The Toon teenagers fell behind inside the opening two minutes at the Cotton Bowl Stadium, with over 23,000 spectators attending on the opening day of the competition, as Felix Felisberto netted for the Brazilian outfit after placing the ball into the far left hand corner.
Playing in temperatures exceeding 30 degrees, the Magpies were unable to draw level minutes later as 17-year-old striker Kacey Wooster, who joined Newcastle's youth set-up from Southend United in the summer of 2023, dragged a penalty wide of the target before São Paulo extended their advantage before the half-time break following efforts from Otavio Garcia and Luis Osario De Oliveira.
Newcastle suffered a further blow four minutes after the restart following Felipe Silva's long-range free-kick before Perivan Dos Santos completed the scoring shortly after the hour mark.
Chris Moore and James Marwood's side will be aiming to keep their hopes of qualifying for the semi-final stages alive when facing US outfit Lonestar SC at Richland College on Monday (kick-off 8pm BST) before taking on Mexican side Tigres UANL two days later at the Toyota Soccer Center (kick-off 8pm BST).
Newcastle United Under-19s: James Taylor, Mason Miley, Henry Johnson, Aaron Epia (Lesecond Yeutembip 46), Jake Durrant (Noah Morgan 75), Jude Cogdon, Fraser Harper (Matthew Taylor 60), Alex O'Donovan, Kyle Fitzgerald (Baran Yildiz 85), Matheos Ferreira (Guy Bloomer 60), Kacey Wooster (Kayden Lucas 65).
Subs not used: Tyler Jones, Thomas Old.
