Manchester City perfect start to the Premier League season came undone in a shock 2-1 loss to Wolves on Saturday, as Arsenal closed to within a point of the lead by cruising to a 4-0 win at Bournemouth.
The City had won the opening six games of their title defence, but they were stunned at Molineux by a Wolves side who had taken just four points from their first six games.
Ruben Dias’ own goal put the home side in front, but City responded after the breakthrough of Julian Alvarez’s free-kick.
However, Wolves got their reward when Hwang Hee-Chan swept home at the second attempt 25 minutes from time.
City’s defeat means that Liverpool can go top if they beat Tottenham in the late kick-off on Saturday.
Arsenal, meanwhile, moved up to second as Mikel Arteta’s men eased to victory at Bournemouth.
Bukayo Saka opened the scoring on his 87th consecutive Premier League appearance, and Martin Odegaard doubled the lead before the break.
Kai Havertz got his first goal for the club from the penalty spot in the second half, and Ben White rounded off the scoring in stoppage time.
Elsewhere on Saturday, Newcastle continued their recovery from a slow start to the season with a 2-0 win over Burnley, while Aston Villa thrashed Brighton 6-1 to move into the top four.
Ollie Watkins bagged a hat-trick for Villa, while Jacob Ramsey and Douglas Luiz also got on the scoresheet.
Luton Town also secured their first-ever Premier League win with a 2-1 victory at Everton, while Sheffield United remained bottom of the table after a 2-0 defeat at West Ham.