Arsenal missed the chance to go fourth in the Premier League as they were outplayed by Wolves at Molineux.
Ruben Neves put the hosts ahead with a direct free-kick from 25 yards before Matt Doherty headed in a second.
Diogo Jota added a third just before half-time after the Gunners gave the ball away and he ran at the away defence before firing a shot under goalkeeper Bernd Leno.
Arsenal defender Sokratis headed in from Granit Xhaka's corner in the 80th minute but it was not enough for the Gunners.
The victory takes Wolves up from 10th to seventh, while Arsenal remain fifth, one point adrift of fourth-placed Chelsea and four behind north London rivals Tottenham.
With three games left of the season, Wolves are in contention to qualify for Europe.
If Manchester City beat Watford in the FA Cup final the team finishing seventh in the Premier League will take the last available European spot and enter next season's Europa League at the second qualifying round phase.
Have your say
More Sports Headlines
- AL-SMITH: The Black Stars patriotism, under scrutiny, demands an emphatic answer
- Cameroon v Guinea-Bissau: Kick-off time, team news, head-to-head, form and more
- Afcon 2019: Ayew optimistic about Ghana victory against Benin today
- Ghana v Benin: Kick-off time, team news, head-to-head, form and more
- AFCON 2019: Mali dominant in win against Mauritania
- Jordan Ayew, the stagnation of a one-time Ghana prodigy
- AFCON 2019: Cameroon's Joel Tagueu ruled out of tournament with heart defect
- Prof. Wallace writes: Black Stars' pre-tournament 'goal drought'; a cause for concern?
- AFCON 2019: Djalma secures crucial point for Angola against Tunisia
- AFCON 2019: Asamoah Gyan set for another milestone
- AFCON 2019: Tunisian to referee Ghana’s clash with Benin
- AFCON 2019: Kodjia strike sees Ivory Coast scrape past South Africa
- Rafael Benitez to leave Newcastle United
- Ivory Coast v South Africa: kick-off time, team news, head-to-head, form and more
- AFCON 2019: Morocco coach blasts referee after he refuses water break in searing heat