The Nasdaq Composite became the main symbol of the dot-com crash after falling sharply from its 2000 peak.
The technology-heavy index reached an intraday high of 5,132.52 on March 10, 2000. As investor enthusiasm for internet companies collapsed, the Nasdaq Composite lost roughly 78% of its value by October 2002.
Many dot-com businesses had high valuations despite limited revenue or profits. When expectations changed, technology and telecommunications shares were sold heavily. The crash spread beyond newly created internet companies and affected established technology businesses as well.
The Nasdaq Composite is an index, not a company or a stock exchange. It includes thousands of listings on Nasdaq, with a strong concentration in technology and growth companies. The broader U.S. market also declined, but the Nasdaq’s extreme fall made it the clearest market barometer of the dot-com bust.