Which index fell 78% during the 2000–2002 dot-com stock-market crash?

The Nasdaq Composite fell about 78% during the 2000–2002 dot-com stock-market crash. The index was especially exposed to technology and internet companies, many of which had surged in value despite limited profits or no established business model.

The Nasdaq reached a peak of 5,048.62 on March 10, 2000. As investors began demanding evidence of sustainable earnings, speculative technology shares declined rapidly. The attacks of September 11, 2001, and a broader economic slowdown added to the difficult environment, although the crash had begun before those attacks.

By October 2002, the Nasdaq had lost roughly four-fifths of its peak value. It took many years to regain the 2000 high. The collapse also affected more established technology companies, but the greatest damage occurred among heavily speculative internet ventures.

The term “dot-com bubble” refers to the boom and its reversal, while “Nasdaq Composite” identifies the market index that recorded the famous percentage decline. The Nasdaq is not limited exclusively to internet businesses.