The Nasdaq Composite was the prominent U.S. technology index that collapsed after the dot-com bubble peaked in 2000.
The index reached an intraday record of 5,132.52 on 10 March 2000, as investors aggressively bought internet and technology shares. Many companies had little revenue, no profits, or business models dependent on continually rising valuations. When confidence changed, technology shares fell rapidly and the Nasdaq became the clearest market symbol of the bubble’s burst.
The collapse was not simply caused by the failure of one company. Rising interest rates, tighter financing, disappointing earnings, and investor reassessment of speculative valuations all contributed. The September 11 attacks and the 2001 recession added further pressure after the initial break.
The Nasdaq Composite is broader than a pure technology index: it includes many companies listed on Nasdaq, including firms outside technology. Still, technology stocks dominated its movement during the bubble. The index remained far below its 2000 peak for years before eventually setting a new record in 2015.