(CNN) -- Fernando Torres rediscovered his scoring touch as Liverpool continued their revival under new owners with a 2-0 win over English Premier League leaders Chelsea at Anfield on Sunday.
The Spanish star scored two magnificent first half goals to seal three points for Roy Hodgson's men.
The first came after 11 minutes as he instantly controlled a Dirk Kuyt through ball before beating Petr Cech with a low shot.
He doubled the advantage just before the interval as he cut inside before curling home a superb shot.
Chelsea manager Carlo Ancelotti introduced striker Didier Drogba, who had an overnight illness, after the break and it sparked an improvement by his side after a lifeless first half.
Home keeper Pepe Reina blocked a close range shot from Florent Malouda after a cross by Droga.
Cech prevented his team from going three down when he stretched out a leg to deny Dirk Kuyt before Chelsea nearly cut the deficit only for Nicolas Anelka's strike to hit the crossbar.
Jamie Carragher summed up the spirit in the Liverpool side as he made a last-ditch tackle to deny Drogba scoring from the rebound.
The defeat leaves Chelsea just two points clear of Manchester United, who beat Wolves 2-1 on Saturday.
Hodgson, who was under pressure before his side's improvement since New England Sports Ventures took control of the club, was delighted to see Torres back to his best.
"He is a vital player for us and would be any club. You can't have success if you don't have front players who do a good job for you," he told Sky Sports.
Third-placed Arsenal were also beaten in Sunday's early game as they slid to a 1-0 home defeat to promoted Newcastle at the Emirates.
Arsenal were hoping to regain second spot in the standings ahead of Manchester United, but a goal from in-form striker Andy Carroll just before halftime sealed victory for Chris Hughton's men.
Carroll, who was watched by England manager Fabio Capello, rose high to head home a well-flighted free kick from Joey Barton past Lucasz Fabianski.
It was the third straight win for improving Newcastle, who were rarely troubled by a labored Arsenal side.
Cesc Fabregas rattled the crossbar with a first half free kick and Theo Walcott hit the woodwork after the break, but a miserable afternoon for the Gunners was complete when Laurent Koscielny was sent off in added time.
He pulled back Nile Ranger as Newcastle broke upfield in a quick counter attack.
In Sunday's other fixture, Manchester City ended a run of three straight defeats with a 2-0 win at West Bromwich Albion.
Italian striker Mario Balotelli scored both City's goals in the first half, but blotted his copybook by being sent off after the break.
He was shown red for kicking out at Youssuf Mulumbu minutes after being booked.
Mulumbu was then sent off for a strong challenge on the returning Carlos Tevez, who had a hand in both goals.
The win takes Roberto Mancini's men level on points with Arsenal as they stay in the Champions League places after 11 rounds.