Liverpool goes back to top of Premier League. Man United stunned by 4-3 loss at Chelsea

Liverpool’s players overcame an unexpected test of their Premier League title credentials against last-place Sheffield United on Thursday. Manchester United, meanwhile, went into meltdown at Chelsea.

This was a latest reminder of the gulf that separates English soccer’s fiercest rivals ahead of their clash at Old Trafford on Sunday.

Liverpool is back on top after a 3-1 win against Sheffield United, while Manchester United conceded two goals in stoppage time in a stunning 4-3 loss at Chelsea.

Liverpool's win further demonstrated the resolve of Jurgen Klopp’s team and the growing influence of Alexis Mac Allister, whose stunning second-half strike set up victory.

Anfield erupted as the Argentina international unleashed an unstoppable drive from the edge of the box that crashed into the top corner in the 76th minute.

The atmosphere had been getting increasingly tense before that with the game locked at 1-1. Substitute Cody Gakpo added a third for Liverpool in the 90th to make the win look more routine than it was.

“We had to dig very deep, but that is normal. Our attitude was good, the football was not great in a lot of moments,” Klopp said.

While Liverpool could be knocked off the top again by the time it heads to United on Sunday, the Merseyside club keeps on coming up with the answers as it stares down the challenge of Arsenal and Manchester City.

By contrast, United’s season descended deeper into crisis after losing in dramatic circumstances at Chelsea.

It doesn’t get any easier for Erik ten Hag’s team, which has to pick itself up for the challenge of facing a Liverpool team that is growing in confidence in its pursuit of the title.

United's 12th league defeat of the campaign was played out in front of new co-owner Jim Ratcliffe at Stamford Bridge and came after Saturday’s 1-1 draw with Brentford.

The pressure on Ten Hag is growing.

“In five days we dropped five points. That is unacceptable,” he said. “We should have a high standard if we want to compete for Champions League football.”

UNITED STUNNED

Having conceded late at Brentford, United suffered an even worse collapse at Chelsea after Cole Palmer scored twice in stoppage time to complete a hat trick and an unlikely comeback for Mauricio Pochettino’s team.

United had looked set to walk away with a morale-boosting win after recovering from a disastrous start — going 2-0 down early through a goal from Conor Gallagher and Palmer’s penalty.

Alejandro Garnacho and Bruno Fernandes evened the score at 2-2 before halftime and Garnacho headed his team in front after the break.

But Diogo Dalot’s clumsy challenge on substitute Noni Madueke earned Chelsea a second penalty and Palmer — a boyhood United fan — converted in the 110th.

The drama wasn’t over yet. A minute later, Palmer’s effort from outside the box was deflected past Andre Onana to seal a spectacular win.

“(I’m) So happy because I think we deserved to win. It was tough, but overall we were the better team,” Pochettino said.

LIVERPOOL LEADS

Liverpool’s win moved it two points clear of second-place Arsenal and three ahead of City in third, but Sheffield United had threatened to spring a surprise in the race for the title.

Up until Mac Allister’s strike it had looked like being a potentially frustrating night at Anfield after Conor Bradley’s own goal had evened the game at 1-1 — canceling out Darwin Nunez’s opener.

Mac Allister’s long-range strike restored the lead and lifted the mood before Gakpo made it 3-1 with a header.

“Patience is the most important thing. You can get frustrated or in a bad mood, but we stayed calm and focused,” Gakpo said.

James Robson is at https://twitter.com/jamesalanrobson

AP soccer: https://apnews.com/hub/soccer

Chelsea's Cole Palmer, right, celebrates after scoring his side's third goal during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Chelsea's Cole Palmer, right, celebrates after scoring his side's fourth goal during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Manchester United's Antony, center, is challenged by Chelsea's Enzo Fernandez, left, and Chelsea's Moises Caicedo during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Manchester United's Alejandro Garnacho gestures during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Chelsea's Cole Palmer, center, celebrates after scoring his side's second goal during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Chelsea's Cole Palmer scores his side's third goal during the English Premier League soccer match between Chelsea and Manchester United at Stamford Bridge in London, Thursday, April 4, 2024. (AP Photo/Kin Cheung)

Liverpool's Darwin Nunez celebrates after scoring his side's opening goal during the English Premier League soccer match between Liverpool and Sheffield United at the Anfield stadium in Liverpool, England, Thursday, Apr. 4, 2024. (AP Photo/Jon Super)

Supporters of Liverpool team hold a banner "Thank you Jurgen Klopp" ahead the English Premier League soccer match between Liverpool and Sheffield United at the Anfield stadium in Liverpool, England, Thursday, Apr. 4, 2024. (AP Photo/Jon Super)

Liverpool's Cody Gakpo celebrates after scoring his side's third goal during the English Premier League soccer match between Liverpool and Sheffield United at the Anfield stadium in Liverpool, England, Thursday, Apr. 4, 2024. (AP Photo/Jon Super)

Liverpool's Alexis Mac Allister celebrates after scoring his side's second goal during the English Premier League soccer match between Liverpool and Sheffield United at the Anfield stadium in Liverpool, England, Thursday, Apr. 4, 2024. (AP Photo/Jon Super)

Liverpool's manager Jurgen Klopp celebrates at the end of the English Premier League soccer match between Liverpool and Sheffield United at the Anfield stadium in Liverpool, England, Thursday, Apr. 4, 2024. (AP Photo/Jon Super)

Stocks are sharply higher on Wall Street Friday following a government report showing job growth rose modestly in April, a sign that persistently high interest rates may be starting to take a bigger toll on the world’s largest economy.

The S&P 500 was 1.4% higher in morning trading and on track to erase its losses for the week. The Dow Jones Industrial Average gained 535 points, or 1.4%, as of 9:58 a.m. Eastern. The Nasdaq composite climbed 2.2%.

The nation’s employers added 175,000 jobs last month, down sharply from the blockbuster increase of 315,000 in March. It was also well below the 233,000 gain that economists had predicted. April’s average hourly earnings also rose less than expected. The report suggests that the Federal Reserve’s aggressive streak of rate hikes may finally be cooling the pace of hiring.

“The demand for labor is slowing, which will eventually ease inflation pressures, giving the Fed some leeway to cut rates later this year,” said Jeffrey Roach, chief economist for LPL Financial. “Slower payroll growth and fewer hours worked imply the economy is slowing at a measured pace. This jobs report is consistent with the soft landing narrative.”

The U.S. economy is in a tight spot, where the hope is that it remains strong enough to stay out of a recession but not so strong that it worsens the already stalled progress on inflation.

Stubbornly high readings on inflation this year pushed Federal Reserve Chair Jerome Powell to say on Wednesday that it will likely take “longer than previously expected” to get enough confidence about inflation to cut interest rates.

The Fed’s main interest rate has been sitting at its highest level since 2001, and cuts would release some pressure on the economy and financial markets.

After coming into the year forecasting six or more cuts to rates in 2024, traders are now largely betting on just one or two, if any, according to data from CME Group.

Treasury yields in the bond market mostly fell following the jobs report. The yield on the 10-year Treasury eased to 4.50% from 4.59% late Thursday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.79% from 4.88%.

The market's gains were broad Friday, with technology stocks accounting for much of the rally. Apple jumped almost 7% after announcing a mammoth $110 billion stock buyback. The tech giant reported late Thursday that it posted its steepest quarterly decline in iPhone sales since the outset of the pandemic.

Expedia Group slumped about 17% after the online travel company beat Wall Street targets but lowered its full-year bookings guidance because its Vrbo rental unit has been slow to recover from its migration to Expedia’s platform.

In Europe at midday, Germany’s DAX gained 0.7%, while the CAC 40 in Paris rose 0.4% and London’s FTSE 100 added 0.5%.

Markets in Tokyo and mainland China were closed for holidays. The Japanese yen strengthened slightly against the dollar.

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Currency traders pass by the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, May 3, 2024. Asian shares were mostly higher Friday ahead of a report on the U.S. jobs market, with several major markets including Tokyo and Shanghai closed for holidays. (AP Photo/Ahn Young-joon)

Currency traders work near the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, May 3, 2024. Asian shares were mostly higher Friday ahead of a report on the U.S. jobs market, with several major markets including Tokyo and Shanghai closed for holidays. (AP Photo/Ahn Young-joon)

A currency trader smiles near the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, May 3, 2024. (AP Photo/Ahn Young-joon)