The Nasdaq Composite peaked at 5,048.62 before the dot-com bubble burst in 2000.
The index reached that closing level on March 10, 2000, after years of enthusiasm for internet and technology companies. Investors often valued businesses according to website traffic, projected growth, or a promising online concept rather than established profits. Venture capital and initial public offerings helped channel large sums into the sector.
After the peak, the Nasdaq fell steeply as investors reassessed technology valuations. Many young companies failed, while even major firms lost substantial market value. The collapse is commonly described as the bursting of the dot-com bubble, although the Nasdaq’s decline unfolded over a prolonged period rather than in one session.
The Nasdaq Composite tracks thousands of stocks listed on the Nasdaq market, so it is not identical to a technology-only index. The later recovery of internet businesses also does not mean the bubble-era valuations were justified; companies such as Amazon survived and grew, while many others disappeared.