Alan Pardew's men leapfrogged Liverpool into eighth place on 22 points, just two shy of the top six.
Roy Hodgson: "That's a major setback and it's a major blow because we have had a couple of good games recently and we were on a good run.
"The way the first half went and getting the equaliser, I had high hopes that we would continue to play at the level we have played.
"But we didn't, we let Newcastle back into the game and furthermore, we conceded a second goal the like of which you don't really want to see when you are a coach."
LAST TIME LIVERPOOL CAME TO ST JAMES' PARK ...
NEWCASTLE 1 LIVERPOOL 5
NEWCASTLE: Given, Edgar, Taylor, Coloccini, Jose Enrique (Ameobi 46), Gutierrez, Guthrie, Butt (Geremi 56), N'Zogbia, Duff, Owen (LuaLua 79). Subs Not Used: Harper, Xisco, Kadar, Carroll.
LIVERPOOL: Reina, Carragher, Hyypia, Agger, Insua, Benayoun (Alonso 60), Mascherano, Leiva Lucas, Babel, Gerrard (Ngog 70), Kuyt (Skrtel 79). Subs Not Used: Cavalieri, Keane, Riera, El Zhar.
Att: 52,114
Steven Gerrard claimed a double as Liverpool tightened their grip at the top of the Barclays Premier League with a superb display at Newcastle.
The England midfielder got the ball rolling with a 31st-minute opener and then after Sami Hyypia and Ryan Babel had struck either side of David Edgar's header, he completed the job with a 66th-minute second.
There was still time for substitute Xabi Alonso to convert a 76th-minute penalty after fellow newcomer David Ngog had been tripped by Edgar to complete a miserable afternoon for Joe Kinnear's injury-ravaged side, for whom goalkeeper Shay Given made seven remarkable saves.
Rafael Benitez, sitting in the stands at St James' Park, was even able to leave striker Robbie Keane on the bench and withdraw Gerrard to warm applause from both sets of fans as a crowd of 52,114, the biggest of the season, gained an insight into the Reds' title credentials.
The win sent them four points clear at the top, for a few hours at least, and left the Magpies in some disarray on the day owner Mike Ashley announced he would not be selling the club after all and is ready to press ahead with his masterplan once again.
On a day earmarked by the Newcastle supporters to pay tribute to former manager Sir Bobby Robson, the gulf between the side he created and the one on show here could hardly have been wider.
Writing in the match programme, Ashley said: "With the January transfer window approaching, we will be working closely with Joe to see what can be done to strengthen the squad."
Kinnear's list of potential targets will have grown significantly by half-time after his side were torn apart by the visitors in a breathtaking first 45 minutes which demonstrated once again just how important Given is to the club.
The Irishman was one of three Magpies, along with Steven Taylor and Charles N'Zogbia, to be linked with a January move to Arsenal by one newspaper, but had it not been for him, his side could have conceded at least eight by the time they headed back into the dressing room.
In the space of four minutes, he parried Dirk Kuyt's drive at the near post, blocked Gerrard's audacious flick and then pulled off a stunning one-handed save to deny the Reds skipper.
But his work was not done and he had twice thwarted Lucas by the time the clock ticked around to the 20-minute mark before keeping out Hyypia's 42nd-minute header with the help of N'Zogbia on the line.
However, by that point, he had been beaten twice as the rampant visitors finally made the pressure tell, Gerrard sweeping the ball home from Yossi Benayoun's 31st-minute cut-back before Hyypia headed home his captain's corner five minutes later.
Liverpool were simply irresistible, and a rout seemed on the cards.
But the Magpies rallied and after Taylor had headed a Danny Guthrie corner wide, Edgar proved the man for the big occasion once again.
Just short of two years ago, the Canadian marked his home debut with a stunning equaliser against Manchester United, and when he headed another Guthrie set-piece home in injury time his side at least had hope.
Jose Enrique, who had passed a fitness test on a calf injury just before kick-off, failed to re-appear after the break and Shola Ameobi's arrival prompted a reshuffle which saw N'Zogbia drop into the back four and Damien Duff move into midfield.
Ameobi almost made an immediate impact when Michael Owen only just failed to meet his 48th-minute cross with a diving header, but Liverpool's advantage was restored within two minutes.
Referee Mark Halsey was simply not interested in the home side's appeals for handball after Hyypia and then Lucas had helped on Gerrard's corner, and Babel stabbed the loose ball home to make it 3-1.
Kinnear's resources were stretched further with 56 minutes gone when Nicky Butt limped off to be replaced by Geremi, although the Cameroon international almost dragged his side back into the game on the hour.
After Owen had been cynically tripped by Javier Mascherano, he drove the resulting free-kick against the bar with goalkeeper Jose Reina beaten.
But if the game was not already over, the result was put beyond doubt with 24 minutes remaining when Gerrard ran on to Lucas' pass and lifted the ball nonchalantly over Given to make it 4-1.
Alonso made it five from the penalty spot after Edgar had tripped Ngog with 76 minutes gone, and although Guthrie and Taylor both went close, Given had to make a superb double stop to deny Lucas and then Babel at the death.
TOON v REDS - THE HISTORY
2008/2009 Sun 03 May Liverpool 3 - 0 Newcastle Utd. Premier League
Sun 28 Dec Newcastle Utd. 1 - 5 Liverpool Premier League
2007/2008 Sat 08 Mar Liverpool 3 - 0 Newcastle Utd. Premier League
Sat 24 Nov Newcastle Utd. 0 - 3 Liverpool Premier League
2006/2007 Sat 10 Feb Newcastle Utd. 2 - 1 Liverpool Premiership
Wed 20 Sep Liverpool 2 - 0 Newcastle Utd. Premiership
2005/2006 Sun 19 Mar Newcastle Utd. 1 - 3 Liverpool Premiership
Mon 26 Dec Liverpool 2 - 0 Newcastle Utd. Premiership
2004/2005 Sat 05 Mar Newcastle Utd. 1 - 0 Liverpool Premiership
Sun 19 Dec Liverpool 3 - 1 Newcastle Utd. Premiership
2003/2004 Sat 15 May Liverpool 1 - 1 Newcastle Utd. Premiership
Sat 24 Jan Liverpool 2 - 1 Newcastle Utd. F.A. Cup
Sat 06 Dec Newcastle Utd. 1 - 1 Liverpool Premiership
2002/2003 Wed 01 Jan Newcastle Utd. 1 - 0 Liverpool Premiership
Mon 02 Sep Liverpool 2 - 2 Newcastle Utd. Premiership
2001/2002 Wed 06 Mar Liverpool 3 - 0 Newcastle Utd. Premiership
Sun 30 Sep Newcastle Utd. 0 - 2 Liverpool Premiership
2000/2001 Sat 05 May Liverpool 3 - 0 Newcastle Utd. Premiership
Sun 26 Nov Newcastle Utd. 2 - 1 Liverpool Premiership
1999/2000 Sat 25 Mar Liverpool 2 - 1 Newcastle Utd. Premiership
Sun 26 Dec Newcastle Utd. 2 - 2 Liverpool Premiership
1998/1999 Mon 28 Dec Liverpool 4 - 2 Newcastle Utd. Premiership
Sun 30 Aug Newcastle Utd. 1 - 4 Liverpool Premiership
1997/1998 Tue 20 Jan Liverpool 1 - 0 Newcastle Utd. Premiership
Wed 07 Jan Newcastle Utd. 0 - 2 Liverpool League Cup
after extra time, 90 minutes 0-0
Sun 28 Dec Newcastle Utd. 1 - 2 Liverpool Premiership
1996/1997 Mon 10 Mar Liverpool 4 - 3 Newcastle Utd. Premiership
Mon 23 Dec Newcastle Utd. 1 - 1 Liverpool Premiership
1995/1996 Wed 03 Apr Liverpool 4 - 3 Newcastle Utd. Premiership
Wed 29 Nov Liverpool 0 - 1 Newcastle Utd. League Cup
Sat 04 Nov Newcastle Utd. 2 - 1 Liverpool Premiership
1994/1995 Sat 04 Mar Liverpool 2 - 0 Newcastle Utd. Premiership
Sat 24 Sep Newcastle Utd. 1 - 1 Liverpool Premiership
1993/1994 Sat 16 Apr Liverpool 0 - 2 Newcastle Utd. Premiership
Sun 21 Nov Newcastle Utd. 3 - 0 Liverpool Premiership
1988/1989 Sat 04 Feb Newcastle Utd. 2 - 2 Liverpool First Division
Sat 01 Oct Liverpool 1 - 2 Newcastle Utd. First Division
1987/1988 Mon 28 Dec Liverpool 4 - 0 Newcastle Utd. First Division
Sun 20 Sep Newcastle Utd. 1 - 4 Liverpool First Division
1986/1987 Sat 24 Jan Liverpool 2 - 0 Newcastle Utd. First Division
Sat 23 Aug Newcastle Utd. 0 - 2 Liverpool First Division
1985/1986 Sat 21 Dec Liverpool 1 - 1 Newcastle Utd. First Division
Sat 24 Aug Newcastle Utd. 1 - 0 Liverpool First Division
1984/1985 Sat 20 Apr Liverpool 3 - 1 Newcastle Utd. First Division
Sun 18 Nov Newcastle Utd. 0 - 2 Liverpool First Division
1983/1984 Fri 06 Jan Liverpool 4 - 0 Newcastle Utd. F.A. Cup
1977/1978 Sat 31 Dec Newcastle Utd. 0 - 2 Liverpool First Division
Tue 23 Aug Liverpool 2 - 0 Newcastle Utd. First Division
1976/1977 Sat 05 Mar Liverpool 1 - 0 Newcastle Utd. First Division
Sat 25 Sep Newcastle Utd. 1 - 0 Liverpool First Division
1975/1976 Sat 21 Feb Liverpool 2 - 0 Newcastle Utd. First Division
Sat 15 Nov Newcastle Utd. 1 - 2 Liverpool First Division
1974/1975 Tue 25 Mar Liverpool 4 - 0 Newcastle Utd. First Division
Wed 12 Feb Newcastle Utd. 4 - 1 Liverpool First Division
1973/1974 Sat 04 May Liverpool 3 - 0 Newcastle Utd. F.A. Cup
played at Wembley
Sat 23 Feb Newcastle Utd. 0 - 0 Liverpool First Division
Sat 06 Oct Liverpool 2 - 1 Newcastle Utd. First Division
1972/1973 Sat 21 Apr Newcastle Utd. 2 - 1 Liverpool First Division
Sat 18 Nov Liverpool 3 - 2 Newcastle Utd. First Division
1971/1972 Sat 18 Mar Liverpool 5 - 0 Newcastle Utd. First Division
Sat 21 Aug Newcastle Utd. 3 - 2 Liverpool First Division
1970/1971 Tue 06 Apr Liverpool 1 - 1 Newcastle Utd. First Division
Sat 12 Sep Newcastle Utd. 0 - 0 Liverpool First Division
1969/1970 Mon 16 Feb Liverpool 0 - 0 Newcastle Utd. First Division
Sat 11 Oct Newcastle Utd. 1 - 0 Liverpool First Division
1968/1969 Sat 17 May Newcastle Utd. 1 - 1 Liverpool First Division
Sat 26 Oct Liverpool 2 - 1 Newcastle Utd. First Division
1967/1968 Sat 23 Dec Newcastle Utd. 1 - 1 Liverpool First Division
Sat 26 Aug Liverpool 6 - 0 Newcastle Utd. First Division
1966/1967 Fri 07 Apr Liverpool 3 - 1 Newcastle Utd. First Division
Sat 12 Nov Newcastle Utd. 0 - 2 Liverpool First Division
1965/1966 Sat 18 Dec Newcastle Utd. 0 - 0 Liverpool First Division
Sat 16 Oct Liverpool 2 - 0 Newcastle Utd. First Division
1961/1962 Wed 04 Oct Liverpool 2 - 0 Newcastle Utd. Second Division
Wed 20 Sep Newcastle Utd. 1 - 2 Liverpool Second Division
1953/1954 Wed 02 Sep Newcastle Utd. 4 - 0 Liverpool First Division
Wed 26 Aug Liverpool 2 - 2 Newcastle Utd. First Division
1952/1953 Sat 21 Feb Newcastle Utd. 1 - 2 Liverpool First Division
Sat 04 Oct Liverpool 5 - 3 Newcastle Utd. First Division
1951/1952 Sat 22 Mar Liverpool 3 - 0 Newcastle Utd. First Division
Sat 03 Nov Newcastle Utd. 1 - 1 Liverpool First Division
1950/1951 Sat 24 Mar Newcastle Utd. 1 - 1 Liverpool First Division
Sat 04 Nov Liverpool 2 - 4 Newcastle Utd. First Division
1949/1950 Sat 08 Apr Newcastle Utd. 5 - 1 Liverpool First Division
Sat 22 Oct Liverpool 2 - 2 Newcastle Utd. First Division
1948/1949 Sat 23 Apr Liverpool 1 - 1 Newcastle Utd. First Division
Sat 30 Oct Newcastle Utd. 1 - 0 Liverpool First Division
1933/1934 Mon 01 Jan Newcastle Utd. 9 - 2 Liverpool First Division
Sat 23 Dec Liverpool 1 - 2 Newcastle Utd. First Division
1932/1933 Sat 07 Jan Liverpool 3 - 0 Newcastle Utd. First Division
Sat 03 Sep Newcastle Utd. 4 - 3 Liverpool First Division
1931/1932 Sat 02 Jan Liverpool 4 - 2 Newcastle Utd. First Division
Sat 29 Aug Newcastle Utd. 0 - 1 Liverpool First Division
1930/1931 Sat 07 Feb Liverpool 4 - 2 Newcastle Utd. First Division
Sat 04 Oct Newcastle Utd. 0 - 4 Liverpool First Division
1929/1930 Mon 21 Apr Liverpool 0 - 0 Newcastle Utd. First Division
Fri 18 Apr Newcastle Utd. 3 - 1 Liverpool First Division
1928/1929 Sat 23 Feb Newcastle Utd. 2 - 2 Liverpool First Division
Sat 13 Oct Liverpool 2 - 1 Newcastle Utd. First Division
1927/1928 Sat 14 Apr Liverpool 0 - 0 Newcastle Utd. First Division
Sat 03 Dec Newcastle Utd. 1 - 1 Liverpool First Division
1926/1927 Sat 26 Feb Liverpool 1 - 2 Newcastle Utd. First Division
Sat 09 Oct Newcastle Utd. 1 - 0 Liverpool First Division
1925/1926 Sat 26 Dec Newcastle Utd. 3 - 0 Liverpool First Division
Fri 25 Dec Liverpool 6 - 3 Newcastle Utd. First Division
1924/1925 Sat 14 Feb Liverpool 1 - 1 Newcastle Utd. First Division
Sat 11 Oct Newcastle Utd. 0 - 0 Liverpool First Division
1923/1924 Sat 08 Mar Newcastle Utd. 1 - 0 Liverpool F.A. Cup
Wed 26 Dec Newcastle Utd. 2 - 1 Liverpool First Division
Tue 25 Dec Liverpool 0 - 1 Newcastle Utd. First Division
1922/1923 Sat 09 Dec Newcastle Utd. 0 - 1 Liverpool First Division
Sat 02 Dec Liverpool 0 - 2 Newcastle Utd. First Division
1921/1922 Mon 02 Jan Newcastle Utd. 1 - 1 Liverpool First Division
Mon 26 Dec Liverpool 1 - 0 Newcastle Utd. First Division
1920/1921 Sat 29 Jan Newcastle Utd. 1 - 0 Liverpool F.A. Cup
Sat 27 Nov Liverpool 0 - 1 Newcastle Utd. First Division
Sat 20 Nov Newcastle Utd. 2 - 0 Liverpool First Division
1919/1920 Sat 04 Oct Newcastle Utd. 3 - 0 Liverpool First Division
Sat 27 Sep Liverpool 1 - 1 Newcastle Utd. First Division
1914/1915 Mon 29 Mar Liverpool 2 - 2 Newcastle Utd. First Division
Sat 07 Nov Newcastle Utd. 0 - 0 Liverpool First Division
1913/1914 Wed 01 Apr Newcastle Utd. 1 - 2 Liverpool First Division
Sat 22 Nov Liverpool 0 - 0 Newcastle Utd. First Division
1912/1913 Wed 26 Feb Newcastle Utd. 1 - 0 Liverpool F.A. Cup
Sat 22 Feb Liverpool 1 - 1 Newcastle Utd. F.A. Cup
Wed 01 Jan Newcastle Utd. 0 - 0 Liverpool First Division
Thu 26 Dec Liverpool 2 - 1 Newcastle Utd. First Division
1911/1912 Sat 13 Apr Newcastle Utd. 1 - 1 Liverpool First Division
Sat 09 Dec Liverpool 0 - 1 Newcastle Utd. First Division
1910/1911 Mon 27 Feb Liverpool 3 - 0 Newcastle Utd. First Division
Sat 22 Oct Newcastle Utd. 6 - 1 Liverpool First Division
1909/1910 Sat 16 Apr Newcastle Utd. 1 - 3 Liverpool First Division
Sat 04 Dec Liverpool 6 - 5 Newcastle Utd. First Division
1908/1909 Fri 30 Apr Newcastle Utd. 0 - 1 Liverpool First Division
Sat 31 Oct Liverpool 2 - 1 Newcastle Utd. First Division
1907/1908 Sat 11 Apr Newcastle Utd. 3 - 1 Liverpool First Division
Sat 22 Feb Newcastle Utd. 3 - 1 Liverpool F.A. Cup
Sat 14 Dec Liverpool 1 - 5 Newcastle Utd. First Division
1906/1907 Sat 23 Mar Liverpool 4 - 1 Newcastle Utd. First Division
Sat 17 Nov Newcastle Utd. 2 - 0 Liverpool First Division
1905/1906 Mon 09 Apr Liverpool 3 - 0 Newcastle Utd. First Division
Sat 25 Nov Newcastle Utd. 2 - 3 Liverpool First Division
1903/1904 Sat 19 Mar Newcastle Utd. 1 - 1 Liverpool First Division
Sat 21 Nov Liverpool 1 - 0 Newcastle Utd. First Division
1902/1903 Sat 07 Mar Liverpool 3 - 0 Newcastle Utd. First Division
Sat 08 Nov Newcastle Utd. 1 - 2 Liverpool First Division
1901/1902 Sat 22 Mar Liverpool 0 - 1 Newcastle Utd. First Division
Sat 23 Nov Newcastle Utd. 1 - 0 Liverpool First Division
1900/1901 Sat 30 Mar Liverpool 3 - 0 Newcastle Utd. First Division
Sat 24 Nov Newcastle Utd. 1 - 1 Liverpool First Division
1899/1900 Sat 17 Mar Liverpool 2 - 0 Newcastle Utd. First Division
Sat 11 Nov Newcastle Utd. 1 - 1 Liverpool First Division
1898/1899 Mon 03 Apr Liverpool 3 - 2 Newcastle Utd. First Division
Sat 11 Feb Liverpool 3 - 1 Newcastle Utd. F.A. Cup
Sat 05 Nov Newcastle Utd. 3 - 0 Liverpool First Division
1895/1896 Sat 05 Oct Newcastle Utd. 1 - 0 Liverpool Second Division
Sat 14 Sep Liverpool 5 - 1 Newcastle Utd. Second Division
1893/1894 Sat 25 Nov Newcastle Utd. 0 - 0 Liverpool Second Division
Sat 04 Nov Liverpool 5 - 1 Newcastle Utd. Second Division