The Nasdaq Composite reached its dot-com-era peak in March 2000.
The index closed at a record high of 5,048.62 on March 10, 2000. That level marked the culmination of a technology-stock boom driven by enthusiasm for internet businesses, rapid growth in online usage, and expectations that new companies would transform commerce. Many firms attracted enormous valuations despite having little revenue or no profits.
After the March peak, technology shares began a prolonged decline. Rising interest rates, disappointing corporate results, failed business models, and a shift in investor expectations all contributed to the reversal. The Nasdaq fell sharply through 2000 and 2001, and the downturn intensified after the September 11 attacks.
The dot-com crash did not mean that the internet was unimportant. Several durable companies survived or grew after the bubble, while many heavily promoted startups disappeared. The Nasdaq’s 2000 record was not surpassed until 2015, illustrating how long the damage to technology-stock valuations lasted.