The Nasdaq Composite reached a pre-crash closing high of 5,048.62 on March 10, 2000.
That record marked the peak of the dot-com bubble, a period when investors poured money into internet and technology companies. Many firms had limited revenue or no profits, yet their share prices rose rapidly because markets expected enormous future growth.
After the March 10 peak, the Nasdaq began a long decline. The collapse reflected changing expectations, rising scrutiny of business models, and the failure of many companies to turn online popularity into sustainable earnings. By October 2002, the index had fallen roughly 78% from its peak.
The dot-com crash did not eliminate the internet economy. Companies with durable business models eventually became major firms, while many highly speculative ventures disappeared. A frequent mistake is confusing the Nasdaq's 5,048.62 closing record with its later inflation-adjusted significance; the figure is the historical closing value recorded at the bubble's peak.