The Nasdaq Composite became the symbol of the dot-com crash after falling about 78% from its 2000 peak.
The index reached an intraday high of 5,132.52 on March 10, 2000. It then plunged as investors reassessed internet and technology companies whose prices had been driven by expectations rather than reliable profits. The Nasdaq Composite eventually bottomed at 1,108.49 on October 9, 2002, a decline of roughly 78% from its peak.
The Nasdaq was especially exposed because it contained many technology, telecommunications, and internet companies. Low interest rates, enthusiastic venture funding, rapid internet adoption, and speculative trading had helped inflate valuations during the late 1990s.
The dot-com crash did not mean that the internet itself failed. Several durable companies survived or later grew substantially, while many firms with weak business models disappeared. The Nasdaq Composite is also distinct from the Nasdaq-100, which tracks 100 large non-financial Nasdaq-listed companies.