Arsenal were in the ascendancy after making a bright start to the game thanks to Nicolas Pepe’s 32nd minute opener.
But Luiz was sent off after a last-man tackle that gifted the hosts a chance to pull parity on the penalty spot before halftime. Ruben Neves eventually stepped up to equalize for Wolves.
Joao Moutinho put Nuno Espirito Santo’s men ahead just four minutes after the interval.
The Gunners had a double whammy when Leno was sent off for handling the ball outside the area, as he rushed off his line to stop an attack from Wolves on the 72nd minute mark.
"The team was really on top of the game, we should have been three or four-nil up and in that action [the Luiz red] the game changed completely,” Arteta said after the game.
"I’ve seen it 10 times in different angles and I cannot tell you where the contact is. If they have another 50 different angles to watch it, maybe I will be surprised. I looked at seven different angles and I cannot see any contact there.
"The team kept trying, kept playing, kept believing. At half-time the boys were so animated because they believed they could still win the game.
“Obviously it was an incredible goal from long range, before that they didn’t have any chances. But still we lost and we have to react.
"We hit the post, hit the bar, the keeper made a couple of great saves. We played exceptionally well, scored one goal and should have scored three or four and had more of a gap, but obviously you concede two red cards in the Premier League. I don’t have any [complaints about] the second red card.
"The team is encouraging me every day to believe in them and to give me a positive feeling all the time."
