The Nasdaq Composite reached its dot-com-era closing peak on March 10, 2000, before the technology-stock crash.
The Nasdaq had surged during the late 1990s as investors poured money into internet, software, telecommunications, and other technology companies. Many businesses attracted enormous valuations despite limited revenue or no profits. The index's technology concentration made it especially sensitive when expectations changed.
After the March 2000 peak, the Nasdaq Composite fell for roughly two years. By October 2002, it had lost about 78% from its high. Numerous internet companies failed, while surviving firms faced sharply lower investment and advertising revenue.
The Nasdaq Composite is not the same as the Nasdaq-100. The Composite includes thousands of Nasdaq-listed common equities, whereas the Nasdaq-100 tracks 100 of the largest non-financial companies listed on the exchange. The 2000 peak is also distinct from the later record highs reached during the 2020s.