.jpeg "Manchester City experienced a surprising defeat at the hands of Wolverhampton Wanderers, while Manchester United suffered a loss by Crystal Palace.")
Aston Villa defeated Brighton 6-1 to climb into the top four, while Arsenal defeated Bournemouth 4-0 to pull within one point of the lead.
To defend their title and attempt to become the first team to ever win four straight English top-flight championships, City had won their first six games.
Wolves, on the other hand, had only won four of their first six games and shocked the champions at Molineux.
The home team took the lead thanks to an own goal by Ruben Dias, but City answered after the break with a free kick from Julian Alvarez.
However, Wolves always posed a threat on the counterattack, and they were rewarded when Hwang Hee-Chan successfully swept home at the second attempt with 25 minutes remaining.
Due to City's loss, Liverpool now has a chance to overtake them if they can ruin Tottenham's perfect Premier League start under Ange Postecoglou in the 16:15 GMT match.
Erik ten Hag is under increasing pressure as United has already dropped four of their first seven league games of the season.
At Old Trafford, a magnificent first-half volley by Joachim Andersen set the teams apart.
In a midweek League Cup matchup between the two teams, United prevailed 3-0.
However, once Palace recovered to full strength, the Red Devils struggled to regain control of the game due to a recurring lack of cutting edge up front.
United drops to 10th in the standings after a loss.
Up one spot, Arsenal
Mikel Arteta's team won easily at Bournemouth, moving Arsenal up to second.
Bukayo Saka, who was questionable due to injury, scored the game's first goal on his 87th consecutive Premier League outing by heading into an empty net.
If Saka had not then delegated the punishment tasks, he might have had more.
This year, Saka and Martin Odegaard have split the duty of converting from the penalty spot, and the Norwegian completed the scoring for Arsenal just before halftime.
On 53 minutes, the Gunners were given a second penalty kick, and Saka and Odegaard both moved aside to give Kai Havertz his first goal for the team.
In extra time, Ben White added one more goal to the score.
Newcastle defeated Burnley 2-0 to extend their season-long comeback from a sluggish start.
The first goal was scored by Miguel Almiron into the top corner, and 14 minutes remaining, Alexander Isak's penalty gave the team the victory.
Ollie Watkins scored three goals in the astonishing victory over Brighton for Villa.
A Pervis Estupinan own goal and two strikes from the English striker gave Villa a 3-0 lead after 26 minutes.
Ansu Fati's first goal for Brighton cut the lead in half.
Watkins, though, was the star of the day as he became the first Villa player in 47 years to record two hat-tricks in a single campaign.
In the dying minutes, Jacob Ramsey and Douglas Luiz made things much worse for Brighton, doing just enough to put Villa ahead of the Seagulls on goal differential.
After his team's 10th consecutive home Premier League victory, Villa manager Unai Emery said, "We are feeling strong here with the supporters, we are connected with them.
With a 2-1 victory at Everton, Luton earned their first-ever Premier League victory.
The Hatters scored two goals to move out of the relegation zone thanks to goals from Tom Lockyer and Carlton Morris.
West Ham defeated Sheffield United 2-0, with goals from Jarrod Bowen and Michail Antonio, keeping the Hammers in last place.