Manchester City's perfect start to the Premier League season came undone in a shock 2-1 loss to Wolves, as Manchester United slumped to a 1-0 home defeat to Crystal Palace on Saturday.
Arsenal closed to within a point of the lead by cruising to a 4-0 win at Bournemouth, while Aston Villa thrashed Brighton 6-1 to move into the top four.
City had won the opening six games of their title defence as they aim to become the first side to ever claim four consecutive English top-flight titles.
By contrast, Wolves had taken just four points from their first six games but stunned the champions at Molineux.
Ruben Dias' own goal put the home side in front, but City responded after the break through Julian Alvarez's free-kick.
Wolves, though, were a constant threat on the counter-attack and got their reward when Hwang Hee-chan swept home at the second attempt 25 minutes from time.
"We have to do more but even when we win we have to do more," said City boss Pep Guardiola, who watched the game from the stands due to suspension.
"When we win and lose we do it together. Today we were not at our best."
City's defeat means Liverpool can go top should they end Tottenham's unbeaten Premier League start under Ange Postecoglou in the 1615GMT kick off.
United have now lost four of their opening seven league games of the season to pile more pressure on Erik ten Hag.
Joachim Andersen's stunning first-half volley separated the sides at Old Trafford.
United had won a League Cup meeting between the sides 3-0 in midweek.
But with Palace restored to full strength, the Red Devils suffered from a familiar lack of cutting edge up front as they laboured to get back into the game.
"The final part of the game we didn't play our best game," said Ten Hag.
"You have to be sharp and clinical. It's about decision making."
Defeat sees United slip to 10th in the table.
- Arsenal up to second -
Arsenal moved up to second as Mikel Arteta's men eased to victory at Bournemouth.
Bukayo Saka had been an injury doubt, but headed into an empty net to open the scoring on his 87th consecutive Premier League appearance.
Saka could have had more had he not then handed over penalty duties.
Martin Odegaard has shared responsibility from the spot with Saka this season and the Norwegian slotted home Arsenal's second before the break.
Both Saka and Odegaard then stood aside to give Kai Havertz the confidence boost of his first goal for the club when the Gunners were awarded a second spot-kick on 53 minutes.
Ben White rounded off the scoring in stoppage time.
Newcastle's recovery from a slow start to the season continues as the Magpies overcame Burnley 2-0.
Miguel Almiron fired into the top corner to open the scoring and Alexander Isak's penalty secured the points 14 minutes from time.
Ollie Watkins bagged a hat-trick in Villa's stunning demolition of Brighton.
Two goals from the England striker and a Pervis Estupinan own goal put Villa 3-0 up inside 26 minutes.
Ansu Fati reduced the deficit with his first Brighton goal.
But the day belonged to Watkins and he became the first Villa player in 47 years to score two hat-tricks in one season.
Jacob Ramsey and Douglas Luiz piled on the pain for Brighton in the closing stages and did enough to edge Villa ahead of the Seagulls on goal difference.
"We are feeling strong here with the supporters, we are connected with them," said Villa boss Unai Emery after a 10th consecutive home Premier League win.
Luton secured their first ever Premier League win with a 2-1 victory at Everton.
Tom Lockyer and Carlton Morris were on target for the Hatters, who climb out of the relegation zone.
Sheffield United remain bottom after the Blades were beaten 2-0 at West Ham with Jarrod Bowen and Michail Antonio getting the goals for David Moyes' men.
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