Manchester City's bid to win a third successive Premier League title suffered a huge setback as the champions crashed to a shock 2-0 defeat against Wolves on Sunday.
Pep Guardiola's side are trailing leaders Liverpool by eight points following Adama Traore's two late goals at the Etihad Stadium.
It was second-placed City's second league defeat this term after their surprise loss at Norwich in September.
Liverpool -- pipped to the title by one point last term -- have won all eight of their league games as they bid to win the English crown for the first time since 1990.
On the other hand, Arsenal edged up to third in the Premier League as David Luiz's first goal for the club earned a 1-0 win over Bournemouth.
Luiz has been a figure of fun for a host of defensive errors early in his Arsenal career after making the switch across London from Chelsea in August
However, the Brazilian is always a threat at the other end of the field and rose highest to head home Nicolas Pepe's corner on nine minutes.
Bournemouth had enough chances to at least earn a point with Callum Wilson missing the clearest opportunity, but Arsenal held out to record their first clean sheet in the Premier League since the opening day of the season.
Victory moves Unai Emery's men a point above Leicester, Chelsea and Crystal Palace in the early running for a top-four finish.
Meanwhile, Tammy Abraham and Mason Mount celebrated their England call-ups by firing Chelsea to a 4-1 rout of struggling Southampton on Sunday.
Abraham, Mount and their Blues team-mate Fikayo Tomori were all named by England manager Gareth Southgate in the squad for the forthcoming Euro 2020 qualifiers in the Czech Republic and Bulgaria.
The promising young trio hogged the spotlight once again at St Mary's as Abraham and Mount netted to maintain their superb starts to the season.
Abraham has nine goals in all competitions for Chelsea this term, underlining why Southgate is keen to get him action in a competitive match to ensure he commits to England.