During the dot-com crash, the Nasdaq Composite reached its peak on March 10, 2000.
The technology-heavy index closed at 5,048.62 that day. Investors had poured money into internet and technology companies, often valuing firms on expected future growth rather than profits, revenue, or established business models. The arrival of many new online companies helped create intense speculative enthusiasm.
After the peak, rising interest rates, disappointing earnings, and the failure of several internet businesses weakened confidence. The Nasdaq fell steeply over the following months and reached a low of 1,114.11 in October 2002, losing nearly 78 percent from its high.
The dot-com crash did not mean that the internet itself was a failed technology. Companies such as Amazon and eBay survived and later expanded, while many weaker ventures disappeared. The crash instead showed how rapidly expectations and share prices can separate from business fundamentals.