England were blown away for 140 in 39.4 overs. The top order failed to cope with the movement, with Emilio Gay (8), Ben Duckett (19), Jacob Bethell (6) and Joe Root (1) all falling cheaply.
Harry Brook offered resistance with a fluent 56 from 71 balls, striking 10 fours, but lacked support as the innings unraveled. Ben Stokes made 12 before a sharp slip catch removed him, and the lower order added only brief runs as Kyle Jamieson led the attack with 5 for 62. Nathan Smith (3 for 38) and Will O'Rourke (2 for 25) also impressed.
New Zealand's reply then collapsed in even more dramatic fashion. England's seamers hit back hard, with Ollie Robinson producing a devastating spell of 4 for 10. New Zealand slumped to 2 for 3 early, with Devon Conway, Kane Williamson and Rachin Ravindra all gone quickly.
Tom Latham (3), Daryl Mitchell (12) and Tom Blundell (4) also fell as wickets tumbled. Glenn Phillips provided the only resistance, finishing unbeaten on 31 from 34 balls, keeping New Zealand afloat at 61 for 6 at stumps alongside Nathan Smith (6 not out).
New Zealand trail by 79 runs with four wickets in hand, leaving the match finely balanced after a chaotic opening day dominated by bowlers.