But political strategists doubt the key financial advisors like Gary Cohn, director of the National Economic Council or Treasury Secretary Steven Mnuchin are close to resigning. The two former Wall Street executives have high credibility in the markets and are viewed as key drivers of the Trump economic agenda, particularly tax reform.
"For the first time, people are now questioning if he can get anything done policy-wise. His agenda is under threat," said Peter Boockvar, chief market analyst at The Lindsey Group.
Stocks slumped Thursday morning as rumors circulated that Cohn was leaving the White House. They recovered slightly after it was denied by the White House, but selling again accelerated and the Dow closed off 274 points at 21,750, its worst day in three months.
"I think it's Trump-related. People are worried about the unraveling of his team, his administration's authority and what this means for tax reform. Every day, he makes a new enemy in Congress. Today's he's picked a fight with [South Carolina Sen.] Lindsey Graham," said Boockvar.
Trump alienated members of his two corporate councils, after he on Tuesday appeared to defend some of the people who marched at a white nationalist rally and noted that "many sides" were at fault in the violence that claimed the life of one woman and injured other protesters in Charlottesville, Virginia, last weekend. He dissolved the two CEO councils, after one high-profile group of CEOs had already voted to disband and others were exiting.