Manchester United, who slipped to 14th, have won just twice in seven Premier League games since Ruben Amorim took charge last month.
United's second successive loss after their League Cup exit at Tottenham on Thursday underlined Ruben Amorim's belief that their road back to the top will be long and arduous.
The club are second from bottom of the table with just nine points from 16 games after Saturday's painful 2-1 home loss to fellow strugglers Ipswich.
The Reds sit five points clear of second-placed Chelsea, who can close the gap with a win against Brentford at Stamford Bridge on Sunday.
Jarrod Bowen eased the pressure on West Ham boss Julen Lopetegui as his superb strike sealed a vital 2-1 win that pushed Wolves manager Gary O'Neil closer to the sack on Monday.
Wolves ended a wait since April for a Premier League win by beating fellow strugglers Southampton 2-0
City are undefeated in 11 games in all competitions this season after avenging last season's 2-1 defeat on their previous visit to Wolves.
Noni Madueke hit a hat-trick as Chelsea crushed Wolves 6-2 to give Enzo Maresca his first Premier League win as Blues boss.
Arsenal shrugged off the disappointment of their Champions League exit to move back to the top of the Premier League with a 2-0 win at Wolves on Saturday.
Kobbie Mainoo scored a 97th-minute winner as Manchester United snatched a dramatic 4-3 win at Wolves
The Football Association has launched an investigation into the crowd trouble that marred Wolves' FA Cup victory over local rivals West Bromwich Albion after fans fought a bloody battle on Sunday.
Brighton were blunt in attack as the Seagulls were lucky to escape with a 0-0 draw at home to Wolves on Monday that did little for either side's ambitions of European football next season.
Wolves inflicted a fourth defeat in six matches on Chelsea on Sunday, beating the London side 2-1 in the first Christmas Eve Premier League match since 1995.
Anthony Gordon scored the only goal at St James' Park to lift Newcastle up to fifth in the table and within two points of the top four.
Wolves boss Gary O'Neil said bad refereeing decisions were hurting his reputation and "people's livelihoods" after his team were on the wrong end of more VAR controversy in their 3-2 defeat at Fulham.
Manchester United eased the pressure on under-fire boss Erik ten Hag with a nervy 1-0 win against Luton on Saturday
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.
Manchester United kept the critics at bay as they cruised into the League Cup fourth round with a 3-0 win against Crystal Palace on Tuesday.