Early goals by Bukayo Saka and Martin Odegaard put Arsenal in control against Wolves but Mikel Arteta's side had to withstand a late rally by the visitors at The Emirates.
Arsenal now hold their largest lead in the table since April when they were five clear of eventual champions Manchester City.
Arteta needs no reminding of how that title race panned out with his side ultimately collapsing, but his side are again showing the consistency to sustain a long title challenge.
They have 33 points from 14 games with City on 29 points ahead of their home clash with injury-hit Tottenham Hotspur on Sunday. Liverpool and Aston Villa, who have 28 points, are also in action on Sunday against Fulham and Bournemouth respectively.
"It's been a good week with some good results. We're there at the top and we have to keep improving and keep pushing," Arsenal skipper Odegaard said. "The schedule is tough, but almost the whole season is tough."
Everton win
By the time Everton kicked off at the City Ground, they were bottom -- courtesy of Burnley's win and the 10-point sanction for breaking Premier League financial sustainability rules.
Sean Dyche's team responded with a battling victory secured by Dwight McNeil's powerful finish in the 67th minute and resolute defending as Forest threw everything into attack.
Burnley could hardly have had a better opportunity to register their first points at Turf Moor since gaining promotion and they took it in emphatic fashion, their 5-0 win the joint best by a side starting the day bottom of the Premier League.
Vincent Kompany's side, the only one in the top four divisions without a home point, needed only 15 seconds to take the lead as Charlie Taylor's cross was glanced in by Jay Rodriguez. Jacob Bruun Larsen made it 2-0 before Sheffield United's Oli McBurnie was sent off on the stroke of halftime after his second yellow card for an elbow.
Zeki Amdouni and Luca Koleosho stretched Burnley's lead with goals in quick succession after the break and Josh Brownhill added the icing on the cake in the 80th minute.
It was Burnley's biggest-ever Premier League win and Kompany said it had been coming.
"The lads deserve all the credit they can get it. It's not been a one-off. We've had performances like that this season," the Belgian told Sky Sports.
Brentford bounced back from their defeat by Arsenal last week to beat Luton Town 3-1 at home to move 10th -- all the goals coming in the second half.
French striker Neal Maupay broke the ice on a freezing day in the capital by sweeping home from close range in the 49th minute.
Ben Mee headed in from a corner in the 56th minute and although Luton pulled a goal back through Jacob Brown, Brentford's Shandon Baptiste made sure of the win.
Defeat left Luton in 17th place on nine points, two clear of the drop zone. Everton climbed to 18th place with seven points, above Burnley on goal difference, and Sheffield United have five points.
