The Gunners started the game brilliantly and took the lead thanks to a masterful individual goal from Nicolas Pepe, but when Luiz brought down Wolves' Willian Jose inside the penalty area and was sent off by referee Craig Pawson, things took a bad turn.
Joao Moutinho's stunning strike in the second half saw to it that Wolves completed the comeback and when Bernd Leno was sent off, Arsenal went down to nine men and returned to London empty-handed.
The subsequent suspensions along with a number of injury issues mean Arteta will be without some key players for their trip to Aston Villa tomorrow. Taking all of the above into account, 90min takes a look at the side the Arsenal boss should name for this weekend's fixture.
1. Goalkeeper & defenders
Runar Runarsson (GK) - The Icelandic stopper's performances in an Arsenal shirt so far have failed to convince the Gunners faithful he is a capable deputy for Leno, but with doubts over Maty Ryan's fitness, Arteta may have no choice but to turn to the 25-year-old.
Hector Bellerin (RB) - Having sent Ainsley Maitland-Niles out on loan and with Kieran Tierney still sidelined, the only natural replacement for Bellerin is Cedric Soares who is needed to fill in at left-back. That, coupled with the Spaniard's good performances of late, means he should continue.
Rob Holding (CB) - Continues to perform at a very high level, has made the right central defensive position very much his own in recent months. Must be one of the first names on the team sheet at present.
Gabriel (CB) - Having returned following a spell out after contracting the coronavirus, Gabriel has had to wait patiently for a return to the starting 11 in the Premier League. With Luiz serving a suspension following his recent red card, his Brazilian compatriot looks set to take his place.
Cedric (LB) - The Portuguese defender has done a great job in deputising for Kieran Tierney to date. Despite playing on his wrong side he has been competent in both attacking and defensive phases of play. He's had to wait for an opportunity to have a run in the side, but so far he's taken it with both hands.
Granit Xhaka (CM) - The Swiss midfielder continued his excellent run of form at Wolves on Tuesday night and has proven himself integral to Mikel Arteta's side, striking the correct balance between defence and attack. The 28-year-old is currently one of this team's most important players.
Thomas Partey (CM) - The summer signing looked a lot fitter and sharper in the game at Wolves. His athleticism and tendency to always look for the most progressive passing option have seen him and Xhaka form a strong partnership. The pair compliment each other brilliantly.
Emile Smith Rowe (AM) - Has been key to Arsenal's recent upturn in form. Having brought Martin Odegaard to the club last month, the 20-year-old now faces competition from the Norwegian but if fit enough, Smith Rowe has done nothing to warrant being dropped from the team.
Bukayo Saka (RW) - The England international caused Wolves all sorts of problems from the very first minute on Tuesday night. His positional switch from the left-hand side to the right has seen him flourish and he'll be looking for his fifth goal in eight Premier League appearances.
Alexandre Lacazette (ST) - The Frenchman is Arsenal's top goalscorer in the Premier League so far this season and has done a great job in linking the play together up front of late. He appears to have struck an understanding with those playing around him and should continue up top.
Nicolas Pepe (LW) - Signed for £72m, it's fair to say Pepe hasn't always impressed in an Arsenal shirt but currently, he is in irresistible form. The Ivorian scored the team's goal at Molineux and gives the side greater balance when operating from the left. His recent form deserves rewarding.
Source : 90min