The Nasdaq Composite reached a dot-com-era closing high of 5,048.62 on March 10, 2000.
The index had surged as investors bought internet and technology companies, often valuing businesses on future possibilities rather than profits. Low interest rates, expanding internet use, venture-capital funding, and enthusiasm for online commerce helped create a powerful speculative cycle.
After the March 2000 peak, many technology shares collapsed. The Nasdaq Composite lost roughly 78% of its value by October 2002, when it reached a bear-market low. Numerous companies failed, while others survived only after abandoning ambitious growth plans or restructuring.
The dot-com crash is sometimes confused with a collapse of the internet economy itself. The technology continued developing rapidly; what failed was the assumption that almost every internet-related company would become highly profitable. Companies such as Amazon ultimately survived and grew, while the bubble exposed the difference between technological promise and sustainable business models.