New York (CNN Business) A market meltdown. Surging recession fears. And a sudden spotlight on America's health care system. Goldman Sachs is warning Wall Street that the coronavirus could cost President Donald Trump the election.

The potential political fallout from the coronavirus adds yet more uncertainty for investors trying to assess the impact of the fast-moving epidemic.

"If the coronavirus epidemic materially affects US economic growth it may increase the likelihood of Democratic victory in the 2020 election," Goldman Sachs analysts led by Ben Snider wrote in a report published Wednesday night.

That could be a negative for stocks because investors have been hoping for a continuation of the low-tax, light-regulation approach of the Trump administration. And Trump of course has been laser-focused on boosting stock prices.

It's no secret that a slowing economy can deal a fatal blow to the candidacy of a sitting president. That's what happened in 1992 when Bill Clinton unseated President George H.W. Bush.

Read More