During the 2000–2002 dot-com crash, the Nasdaq Composite fell about 78% from its March 2000 peak.
The Nasdaq Composite was especially exposed to the collapse because it contained many technology, internet, and telecommunications companies. Investor enthusiasm had driven prices sharply upward during the late-1990s dot-com bubble, even for firms with limited revenue or no profits.
The index reached an intraday high of 5,132.52 on March 10, 2000. After the bubble burst, technology shares declined for more than two years, and the Nasdaq Composite reached a low of 1,108.49 on October 9, 2002. The decline was approximately 78% from peak to trough.
The dot-com crash is sometimes confused with the broader 2001 recession or with the 2008 financial crisis. It began primarily as a reversal in valuations of internet and technology companies, although its effects spread across financial markets and the wider economy.