The peak year of the dot-com boom before the Nasdaq Composite began its historic crash was 2000.
The Nasdaq Composite reached its record closing level of 5,048.62 on March 10, 2000. Technology and internet companies had attracted enormous investment, even when many had little revenue or no profits. Investors expected rapid online growth and often valued companies using optimistic forecasts rather than established earnings.
After the March peak, technology shares began a steep decline. The downturn accelerated as investors reassessed business models, interest rates rose, and numerous internet companies failed to meet expectations. The Nasdaq eventually lost roughly 78% of its value from its 2000 peak to its October 2002 low.
The dot-com crash is sometimes confused with the broader 2008 financial crisis. The dot-com collapse centered on technology and internet equity valuations, while the later crisis was driven primarily by housing finance, credit markets, and banking-system stress. Some major technology companies survived and later became much more valuable.