The Nasdaq Composite reached a peak closing value of 5,048.62 during the dot-com bubble.
That record was set on March 10, 2000, after years of enthusiasm for internet companies and technology shares. Investors often valued businesses according to website traffic, projected growth, or strategic potential rather than established profits. The resulting speculation pushed the technology-heavy index to unprecedented levels.
The peak marked the beginning of the dot-com bust rather than the end of volatility. By October 2002, the Nasdaq had fallen about 78% from its high. Many start-ups failed, while a smaller group of companies with durable business models eventually became major technology firms.
The Nasdaq Composite is not the same as the Nasdaq-100. The Composite includes thousands of Nasdaq-listed common stocks, whereas the Nasdaq-100 tracks 100 of the largest non-financial companies listed on that exchange. Confusing those indexes can produce different peak figures.