Which US stock index fell 78% from its peak during the dot-com crash?

The Nasdaq Composite fell 78% from its peak during the dot-com crash.

The technology-heavy Nasdaq Composite reached a closing peak of 5,048.62 on March 10, 2000. It then plunged as investors reassessed internet companies whose share prices often depended more on rapid growth expectations than on profits. By October 2002, the index had lost about 78% from that peak.

The crash followed a period of enthusiastic investment in websites, telecommunications, and other technology businesses. Many companies raised large amounts of money through initial public offerings despite limited revenue or no profits. When financing became harder and expectations changed, numerous firms failed or were acquired at much lower values.

The Nasdaq’s collapse is often confused with the broader stock market’s performance. The Dow Jones Industrial Average and S&P 500 also declined, but their technology exposure was lower. The Nasdaq eventually surpassed its 2000 closing peak in 2015, illustrating how long recovery from a major valuation bubble can take.