The Nasdaq Composite reached its peak in March 2000, marking the beginning of the 2000–2002 dot-com crash.
The technology-heavy index closed at 5,048.62 on March 10, 2000, after a period of intense enthusiasm for internet companies. Many firms had little revenue or no profits, yet investors assigned them very high valuations based on expected future growth. When confidence changed, technology shares fell sharply and numerous internet businesses failed or were acquired.
The dot-com crash was a market and investment collapse, not a single day like Black Monday in 1987. The Nasdaq’s decline continued for more than two years, reaching a low of 1,114.11 on October 9, 2002. The crash also differed from the 1929 episode because it was concentrated especially in technology and internet shares. Some major technology companies survived and later became much larger, while many speculative start-ups disappeared.