Which technology-heavy U.S. stock index fell sharply when the dot-com bubble burst in 2000?

The Nasdaq Composite was the technology-heavy U.S. stock index that fell sharply when the dot-com bubble burst in 2000.

The index had risen rapidly during the late 1990s as investors poured money into internet and technology companies. Many firms had little revenue or no profits, yet their share prices were justified by expectations of future online growth. The Nasdaq reached a peak of 5,048.62 on March 10, 2000.

After that peak, enthusiasm faded and technology shares declined. The Nasdaq ultimately lost about 78% of its value from the March 2000 high to its October 2002 low. The collapse damaged both publicly traded companies and venture-backed start-ups, while many internet businesses shut down or were acquired.

The Nasdaq Composite was not exclusively a dot-com index: it includes many types of companies listed on the Nasdaq exchange. Its reputation as a technology barometer comes from the large representation of technology and internet stocks in the period surrounding the bubble.