Phil Foden added a third in the second half as City moved to the top of the table with 17 points from seven games, while Wolves are in 16th place having won only once this season.
The home side were reduced to 10 men on 33 minutes after a horrendous challenge from defender Nathan Collins, who launched himself studs-first into the midriff of Grealish and could have no complaints about the straight red card.
There was a minute’s silence ahead of kickoff following the death of Queen Elizabeth and the majority of fans kept a respectful silence, while there was warm applause on 70 minutes from all around the ground to mark the number of years the monarch was on the throne.
The opening goal after 55 seconds was a first of the season for Grealish, who has come under criticism this week for his failure to both score and provide assists since his $190 million move from Aston Villa last year.
The win sees City unbeaten in their last 22 away Premier League games, a club record, and was achieved despite a lethargic second-half display in which they were not at their sizzling best.
Arsenal can return to the top of the table when they play Brentford tomorrow.
Son Heung-min ended his scoring drought in stunning fashion with a sublime hat-trick as Tottenham Hotspur crushed Leicester City 6-2 to move joint top.
The South Korean, the Premier League’s joint-top scorer last season, had not scored in Tottenham’s first eight games.
Leicester remain bottom of the table.
Striker Alexander Isak equalised from the penalty spot to earn Newcastle United a 1-1 draw against Bournemouth at St. James’ Park.
After dominating a first half that saw Kieran Trippier shave the outside of the post with a free kick, Newcastle must have gone in at the break wondering what they needed to do to score after a flurry of chances were thwarted.
Things then went from bad to worse for the hosts when Philip Billing scored for Bournemouth in the 62nd minute.
It was Isak’s first goal at home for Newcastle since joining from Real Sociedad in August for a reported club-record fee of $112 million.
All Whites striker Chris Woods came on for Newcastle for the last couple of minutes.
Newcastle are 10th on the table and Bournemouth 12th.