The Nasdaq Composite reached a record closing level of 5,048.62 before the dot-com crash.
The index reached that closing high on March 10, 2000, after years of enthusiasm for internet and technology companies. Investors had pushed valuations sharply higher, often pricing businesses according to expected future growth rather than current profits. The surge was supported by expanding internet use, venture capital, and the arrival of many newly listed technology firms.
After the peak, the Nasdaq entered a prolonged collapse as investors reassessed technology valuations and the ability of many companies to earn money. The index fell about 78% from its March 2000 peak to its October 2002 low. Many dot-com companies failed, while profitable technology firms also suffered large declines.
The figure is a closing value, not the highest intraday level. The Nasdaq Composite also differs from the Nasdaq-100, a separate index of large non-financial companies listed on Nasdaq.