The Nasdaq Composite peaked at a closing level of 5,048.62 before the dot-com crash.
That record close occurred on March 10, 2000, near the end of a technology-stock boom. Investors had poured money into internet companies, often assigning enormous valuations to businesses with limited revenue, uncertain profits, or untested models. The Nasdaq’s concentration in technology shares made it a prominent measure of the enthusiasm.
After the peak, technology stocks fell sharply. Higher interest-rate expectations, disappointing corporate results, bankruptcies, and skepticism about internet-company valuations all weakened sentiment. The Nasdaq eventually lost roughly four-fifths of its value from its 2000 peak before reaching a later bottom in 2002.
The dot-com crash did not mean that the internet lacked lasting economic value. Many durable online businesses emerged later, but the crash demonstrated that a transformative technology can still be accompanied by speculative pricing. The index’s 2000 peak remained unbroken until 2015.