The Nasdaq Composite reached a record closing level of 5,048.62 on 10 March 2000, before the dot-com bubble began to collapse.
The index had surged because investors poured money into internet and technology companies, often valuing businesses on expected future growth rather than current profits. Many newly listed companies had limited revenue, yet their share prices rose dramatically.
After the March 2000 peak, the Nasdaq fell for roughly two years as enthusiasm faded, companies failed, and investors reassessed technology valuations. The index lost about 78% from its peak to its October 2002 low. The Nasdaq Composite is sometimes confused with the Nasdaq-100, which tracks 100 large non-financial companies listed on Nasdaq.