The Nasdaq Composite lost about 78% from its 2000 peak to its 2002 low during the dot-com crash.
The index reached 5,048.62 at its closing peak on March 10, 2000, after years of enthusiasm for internet companies and other technology shares. It later fell to a closing low of 1,114.11 on October 9, 2002, a decline of roughly 78%.
The crash followed a reversal in expectations about online businesses. Companies with little revenue or no profits had attracted enormous valuations, and rising interest rates made speculative growth stocks less appealing. Many firms failed, while a smaller group developed durable business models.
The Nasdaq’s decline was much steeper than the losses in broader U.S. benchmarks because its composition gave technology and communications companies substantial weight. The later recovery took several years.