Defeat leaves Sunderland still in fourth but now five points off the top of the table.
Newcastle ended their 13-year wait to beat bitter rivals Sunderland as Alexander Isak's double inspired a 3-0 win in the FA Cup third round on Saturday.
Carabao Cup: Eddie Nketiah was in brilliant form and bagged a hat-trick for Arsenal against Sunderland, which also included a fantastic back-heel goal.
Chris Coleman will be given the job of lifting Sunderland off the bottom of the table and ultimately winning promotion back to the Premier League.
This is David Moyes' third successive short-lived stint at a club, following previous disappointments at Manchester United, where he lasted just 10 months, and Real Sociedad.
Arsenal failed to qualify for the Champions League for the first time in 20 years after Manchester City and Liverpool wrapped up the remaining top four places on the final day of the Premier League season.
Alexis Sanchez sank Sunderland to keep Arsenal in the hunt for Champions League qualification, while Manchester City all but secured a top-four place by beating West Bromwich Albion.
Machester City went past Leicester City 2-1 as Swansea beat Sunderland 2-0 to boost their survival bid while Southampton ended their barren run against Middlesbrough on Saturday.
Manchester City leapfrogged Liverpool on goal difference into third place and also moved four points clear of fifth-placed Manchester United as the battle to finish in the top four heats up.
Jamie Vardy scored the goal that effectively ensured Leicester City would remain in the Premier League as the outgoing champions won 1-0 away to West Bromwich Albion.
While Manchester United defeated Sunderland 3-0, Everton moved past Leicester City 4-2 in the Premier League on Sunday.
A fifth goal in three games from Sergio Aguero, whose future at the club has been clouded by the recent impact of the now injured Gabriel Jesus, paved the way for City's seventh victory in eight unbeaten games.
Marcos Alonso, Eden Hazard and Cesc Fabregas scored for Chelsea in their Premier League tie against Arsenal on Saturday.
Philippe Coutinho is in line to make a comeback for Liverpool from a seven-week injury lay-off, manager Jurgen Klopp said.
Chelsea, Manchester City and Manchester United all notched comfortable wins on Monday, while Arsenal had to dig deep for a 1-0 win over West Brom
While Premier League title contenders Chelsea defeated Manchester City 3-1, Arsenal thrashed West Ham 5-1 on Saturday.
Romelu Lukaku, who hadn't scored for Everton in 13 matches dating back to March, scored all three in 11 minutes of the second-half to lift his side to third in the Premier League
Victor Anichebe was a youth-team player at Everton under David Moyes, the current Sunderland manager, and went on to make more than 130 appearances for the Toffees before joining West Brom