Bournemouth picked up a second prized Premier League scalp in a week as they beat Manchester United 2-1 at the Vitality Stadium.
Seven days on from a momentous victory at the home of champions Chelsea, Eddie Howe's men recorded another memorable win as they beat an injury-plagued United.
Junior Stanislas scored directly from a second-minute corner for his third in as many games and, although Marouane Fellaini levelled, former United youngster Joshua King wrapped up the win in the second half.
United, on the back of their chastening Champions League exit, missed the chance to move level at the top of the table as they slipped to a third league defeat of the season just days after Louis van Gaal insisted he was the right man to take them forward.
Manchester City snatched a dramatic late victory over Swansea to go back to the top of the table.
Barclays Prem
C Palace 1 - 0 So'ton
Norwich 1 - 1 Everton
Man City 2 - 1 Swansea
S'land 0 - 1 Watford
B'mouth 2 - 1 Man Utd
West Ham 0 - 0 Stoke
Everton 1 - 1 C Palace
Yaya Toure's stoppage-time shot hit Kelechi Iheanacho on its way in to clinch a 2-1 win just two minutes after Bafetimbi Gomis looked to have given the battling Swans, who sacked manager Garry Monk on Wednesday, a deserved point.
Wilfried Bony returned to haunt his former side after his seventh goal of the season gave City a first-half lead.
Bony headed in Jesus Navas' 26th-minute corner for his third goal in four outings, but Gomis scored at the start of injury-time only for Toure to win it seconds later.
Victory sent City top ahead of Leicester, who play Chelsea on Monday, on goal difference, while Swansea are just a point above the relegation zone after one win in 12 games.
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Earlier, Romelu Lukaku scored in his seventh straight game - and sixth in the Premier League - as Everton were held 1-1 at Norwich.
The striker became the first Toffees player to score in seven successive matches in 40 years, since Bob Latchford in December 1975, when he nodded in Gerard Deulofeu's cross after 15 minutes.
But Wes Hoolahan grabbed a second-half equaliser for the struggling Canaries, who have recorded just one victory in their last 10 matches, although they are now unbeaten in their last three home outings.
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Sunderland failed to take advantage of Norwich dropping points as they slipped to a 1-0 defeat at home to Watford.
Barclays Prem
1 Man City 32
2 Leicester 32
3 Arsenal 30
4 Man Utd 29
5 Tottenham 26
6 C Palace 26
7 Watford 25
8 West Ham 24
9 Everton 23
10 Liverpool 23
11 Stoke 23
12 So'ton 21
13 W Brom 19
14 B'mouth 16
15 Chelsea 15
16 Swansea 14
17 Norwich 14
18 Newcastle 13
19 S'land 12
20 A Villa 6
Odion Ighalo pounced to net his 10th goal of the season in just the fourth minute to secure the Hornets' third straight win, while Jurado also hit a post for the visitors, leaving Sunderland second bottom.
Heurelho Gomes denied Jermain Defoe with a brilliant stop with five minutes to go as the Black Cats' mini revival of two wins in their last three games was ended.
Yohan Cabaye bagged the winner for Crystal Palace as they beat Southampton for the first time in the top flight since 1991. The midfielder tapped in Yannick Bolasie's cross on 38 minutes for his sixth goal of the season, with Palace now just three points off the top four thanks to the 1-0 win.
Steven Davis was denied by a brilliant Wayne Hennessey save before Cabaye's strike as the Saints missed Graziano Pelle, who was only fit enough to make a late appearance from the bench thanks to a knee injury.
Elsewhere, Jack Butland earned Stoke a point at West Ham as the goalkeeper saved Ryan Cresswell's late cross-shot to earn a 0-0 draw for the Potters.
Mauro Zarate also hit a post with eight minutes left for West Ham as the visitors survived two late scares at Upton Park, although Mame Biram Diouf could have won it late on but was thwarted by Adrian.