The Nasdaq was hit especially hard when the dot-com bubble burst in 2000.
The Nasdaq Composite is heavily associated with technology and internet companies. During the late 1990s, investors poured money into businesses connected to the emerging World Wide Web, often accepting high valuations despite limited profits or even substantial losses.
The index reached 5,048.62 intraday on March 10, 2000. It then fell sharply as investors reassessed the prospects and valuations of internet companies. Many newly listed firms failed, while surviving technology businesses faced a much less forgiving market.
The crash is often described as the “dot-com crash,” but the underlying bubble was broader than a single exchange. Technology shares were particularly exposed because the Nasdaq contained many high-growth companies. The Nasdaq eventually recovered its 2000 peak, but not until 2015.