Which technology-heavy U.S. stock index fell about 78% in the dot-com crash?

The Nasdaq Composite fell about 78 percent in the dot-com crash.

The index reached an intraday peak of 5,132.52 on March 10, 2000, after years of enthusiasm for internet and technology companies. Investors often valued firms according to expected future growth rather than current profits, and many newly listed companies had limited revenue or business history.

As interest rates rose and confidence in technology valuations weakened, the bubble burst. The Nasdaq Composite eventually reached an intraday low of 1,108.49 on October 9, 2002, a decline of roughly 78 percent from its peak. Numerous internet companies failed, while surviving firms faced years of reassessment.

The crash did not mean that the internet lacked economic value. Companies such as Amazon and eBay survived and later expanded substantially. The common mistake is to treat the collapse of speculative valuations as proof that all internet businesses were unsound.