The market reversed earlier losses follow a report from The Wall Street Journal (WSJ) on deal talks for First Republic Bank (FRC).  According to the WSJ, Wall Street banks, including JPMorgan (JPM) and Morgan Stanley (MS) are actively discussing a potential deal with First Republic Bank (FRC) – including a takeover. The news has sent FRC reversing course from down 30% today to now up over 20%.

Investors are also digesting the European Central Bank’s (ECB) 50 basis point rate hike, following a 50bps hike in February.  The ECB is giving the Fed some cover to give us one more symbolic hike that can express their confidence in the commitment to tame inflation and the US banking system.

The latest CME Fedwatch shows an 83.4% probability of a 25bps hike by the Fed next week.

Impressive move in the S&P 500, which now is testing key resistance level of 3,971.

Semiconductors are catching a bid again today, helping Technology gain more than 1.5%.

The market is exhibiting great action after a tumultuous week.