NME.com reports that the singers were in the city to promote the ONE, make poverty history campaign, and the Edun clothing line owned by Bono, his wife Ali Hewson and designer Rogan Gregory.
Introducing Rice, Bono said: "What you're about to hear and see is like being at a Bob Dylan gig in the early Sixties or a Cat Stevens gig in the early Seventies or James Taylor, or something extraordinary."
He continued: "Damien Rice is able to still and distil the storms into quiet reflection. He's really a remarkable talent, I can't quite believe that he's here. I'm very humbled and very honoured and I would ask New York to give him the kind of welcome only New York, only Manhattan can, and then give him the silence he deserves because this is something very special."
Rice, repeatedly demanded silence from the audience; among the stars who watched his performance were models Helena Christensen and Christy Turlington and actors Heather Graham and Ed Burns.