The Nasdaq Composite declined 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, after years of enthusiasm for internet and technology companies. Many firms had little revenue, no profits, or business models that depended mainly on continued investor enthusiasm.
The bubble burst as interest rates rose, highly valued companies disappointed investors, and speculative financing became harder to obtain. The Nasdaq continued falling until October 2002, when it was about 78% below its peak.
The crash did not mean that the internet lacked economic value. Instead, it showed that a transformative technology can coexist with unsustainably high share prices. Several durable technology businesses emerged stronger after the speculative excesses were removed.