The Nasdaq Composite fell nearly 78% from its 2000 peak to its 2002 low during the dot-com crash.
The index reached an intraday high of 5,132.52 on March 10, 2000, as investors bid up internet and technology companies. Many firms had little revenue, no profits, or business models that depended on continual access to new capital. When confidence shifted, technology shares fell rapidly.
The Nasdaq Composite eventually reached a closing low of 1,114.11 on October 9, 2002, a decline of about 78% from its peak. The collapse damaged technology businesses and investors, but it did not affect every company equally. Firms with strong cash flow and durable products generally had better prospects than speculative start-ups.
The crash is often called the dot-com crash or dot-com bust. It followed a period of enthusiasm about the commercial internet, and its effects overlapped with the 2001 recession and the economic impact of the September 11 attacks.