The Nasdaq Composite fell approximately 78% from its 2000 peak to its 2002 trough during the dot-com crash. The index reached 5,048.62 on March 10, 2000, before declining to about 1,114 in October 2002.
The boom had been driven by enthusiasm for internet companies, rapid technology adoption, venture-capital funding, and the belief that online businesses would quickly transform commercial life. Many newly listed companies had little revenue or no profits, making their valuations especially vulnerable when investor expectations changed.
The decline did not happen in a single day. Technology shares weakened after the March 2000 peak, and the downturn deepened through 2001 and 2002 as companies failed, financing dried up, and confidence in speculative business models collapsed.
The 78% figure describes the Nasdaq Composite’s peak-to-trough decline, not a single-session loss. It is also distinct from the broader market’s performance, since the Nasdaq had unusually heavy exposure to technology and internet stocks.