In a feast of action Blues picked themselves up off the floor following a third minute goal from Jermaine Jenas to equalise through Dwight Yorke and then take the lead with a goal from Matt Upson.
It was the first time in eleven games that Blues had scored more than once and Upson's goal was his first in Premier league football.
The strength of star-studded Newcastle's squad was highlighted when Nicky Butt equalised with his first goal for the Magpies in eight appearances since his move from Manchester United.
Blues surprisingly began with only one striker which was an obvious policy decision from Bruce to try and combat Newcastle's strong attack.
But it was a move which quickly back-fired on the Blues boss in the opening five minutes.
In this action-packed spell Newcastle took the lead through Jenas and, within a minute, Emile Heskey was injured and subsequently replaced by another recent signing, Yorke.
The power of Newcastle was plainly evident and with Blues again making an indifferent start the visitors took full advantage to race into a third-minute lead.
Following their midweek goal blitz in the UEFA Cup, Newcastle quickly hammered the home defence with Patrick Kluivert firing in a shot, which was blocked into the path of Jenas to score from close range.
Heskey was then injured in the next minute to bring down a cloud on Blues' aspirations of attempting to improve their recent poor form.
Newcastle's cultured play threatened to produce more goals but Blues battled bravely with Robbie Savage a driving force in midfield.
It was the Magpies' persistence with the offside trap which opened the door for Blues to equalise in the 23rd minute.
An astute through pass from David Dunn was collected by Yorke, who progressed some 20 yards before firing a low shot under the body of the advancing Shay Given.
Newcastle were fortunate not to concede a penalty in the 28th minute when Stephen Carr collided with Yorke as both players contested a Damien Johnson cross.
The game was played at a frantic pace in persistent rain and reached fever pitch when Blues took a 58th minute lead.
Andy O'Brien conceded a free-kick against Jesper Gronkjaer wide on the left. Savage curled in a perfect cross which Upson headed home from close range.
However, Blues' joy was short lived as United stormed back in determined fashion for Butt to notch a 66th minute equalizer. Jamie Clapham headed an intended clearance straight to the England international to score with an instinctive scissor-kick.
Only a fine close-range save by Given prevented David Dunn, making his first Premiership start of the season, notching a third goal for Blues.
Newcastle themselves strived for the winner and substitute Laurent Robert hit the post two minutes from time.