The Nasdaq Composite was the main symbol of the 2000–2002 dot-com crash because of its heavy concentration of technology and internet companies.
The index tracks thousands of common equities listed on the Nasdaq stock exchange. During the late-1990s technology boom, investors placed exceptionally high valuations on companies connected with the internet, software, telecommunications, and related industries.
The Nasdaq Composite peaked at 5,132.52 on March 10, 2000. It then fell for more than two years, reaching a low of 1,108.49 on October 9, 2002. The decline was approximately 78% from peak to trough, making the index a clear measure of the bubble’s collapse.
The Nasdaq Composite should not be confused with the Nasdaq-100, which contains 100 large non-financial Nasdaq-listed companies. The Composite is broader. Nor was every technology company destroyed: firms with durable products, strong cash flow, and viable customers eventually recovered or expanded.