The NASDAQ Composite lost nearly 78 percent of its value after the dot-com bubble peaked in March 2000.
The index is heavily associated with technology and growth companies because many businesses listed on the Nasdaq exchange were internet, software, and telecommunications firms. During the late 1990s, investors drove technology valuations to extraordinary levels, often despite limited profits or unproven business models.
The NASDAQ Composite reached an intraday peak of 5,132.52 on March 10, 2000. It then fell for roughly two and a half years, reaching a low of 1,108.49 on October 9, 2002. The decline from peak to trough was about 78 percent.
The crash did not mean every technology company failed. Some firms with durable products and business models eventually became market leaders. The NASDAQ Composite also differs from the Nasdaq-100, which contains a narrower group of large non-financial Nasdaq-listed companies.