Shearer's stunning strike early in the game was a rare bright spot in a dull and dreary clash involving two mid-table teams.
And a share of the spoils did little to enhance the prospects of either side climbing the table into a European place.
City, beaten at bottom club West Brom in their last match, handed a debut to new Dutch loan signing to Kiki Musampa.
There was also the chance to see one of Newcastle's transfer window captures from Portsmouth, Amdy Faye.
City could not have made a worse start as Newcastle took a ninth minute lead through master marksman Shearer.
Titus Bramble's 60-yard pass from defence released Shearer on the right and he burst forward before powering a shot into the top corner of the net.
City, with Nicolas Anelka sold to Fenerbahce, were toothless in attack, failing to create a decent chance in the opening period.
Indeed, their best scoring opportunity came from a Celestine Babayaro back-pass which hit a divot resulting in keeper Shay Given completely missing his kick. He managed to clear the danger as the ball rolled towards the unguarded goal.
City were handed an unexpected lifeline three minutes into the second half when Bramble tripped Shaun Wright-Phillips as he burst into the penalty area.
Robbie Fowler stepped up to send Given the wrong way from the spot for his seventh goal of the season.
It was the only way City were ever going to find the net, with Given redundant for most of the match, as was his opposite number David James.
Neither keeper had a serious shot to save and the match petered out into a tame draw which didn't do either side any good in their pursuit of a UEFA Cup place.