The home side – who had Charlie Oliver sent off - came from behind twice thanks to Brahim Diaz, who cancelled out Duncan Watmore and Ethan Robson’s strikes.
What happened
City were reduced to 10 men inside five minutes in what was the first attack of the game, as Oliver pulled back Watmore in the area.
The referee pointed to the spot and the striker – making his first start since an ACL injury nine months ago – duly obliged, sending Daniel Grimshaw the wrong way to open the scoring after six minutes.
Sunderland could have extended their lead immediately, but for the reflexes of the City shot-stopper who first denied Watmore and was at his best to block the follow up.
It was proving to be an end to end affair and young Taylor Richards was the next to go close. The winger danced past two defenders with ease, only to pull his effort into the side netting.
It was by no means obvious that the Blues were without a man, but with first teamer Watmore in the attack, the away side carried a constant attacking threat.
As City grew into the game, they were handed a lifeline when Tom Dele-Bashiru was felled in the six yard box and Diaz calmly dispatched the resulting spot kick to bring his side level.
Despite the best efforts of the 10 men, it was Sunderland who went in ahead at the break as Robson found space in the area and arrowed a low drive into Grimshaw’s bottom left corner on the stroke of half time.
Davies’ side rallied after the break as they again tried to get back in the game and they did thanks to a moment of brilliance from Diaz on the hour mark.
Picking the ball up on the left of the penalty area and with defenders in front of him, the Spaniard took advantage of a yard of space to curl a fine effort into the top right corner.
As the game reached it’s finale, clear cut chances were few and far between as both defences held firm.
But City were unfortunate not to clinch all three points. First, through Rabbi Matondo, whose shot to trickled agonisingly wide of the post, before Foden thundered a shot against the underside of the crossbar in the final minute.
How they lined up?
Simon Davies made four changes to the side that started 1-0 defeat against Liverpool last weekend.
Grimshaw retained his place in goal, as did Oliver and Ed Francis in front of him at the heart of defence.
Captain Jacob Davenport was again in the left back berth, while Duhaney returned to Premier League 2 action at right back.
Matt Smith and Foden were again two of a midfield trio, with Checkatrade Trophy win over Rotherham.
UEFA Youth League – with Taylor Richards and Benjamin Garre operating on the flanks either side of him.
Man of the match - Brahim Diaz
His second goal a delight, the young Spaniard was at the heart of much of City’s best play. His tremendous work ethic combined with his usual bag of tricks to make him a thorn in the side of the Black Cats defence.
What it means?
City are still searching for their first win in the league, with this result leaving them with a record of three wins and two defeats from their opening five games.
A point, however, moves them into eleventh place with an away trip to seventh placed Swansea to come on Friday 22 September.