NASDAQ became closely associated with the dot-com stock-market crash.
NASDAQ is a U.S. electronic stock exchange with a strong concentration of technology and growth companies. During the late 1990s, investors poured money into internet businesses, often valuing companies far above what their revenues or profits could justify.
The NASDAQ Composite reached a peak of 5,048.62 on March 10, 2000. As investors reconsidered unrealistic business models and rising interest rates reduced the appeal of speculative assets, technology shares began a prolonged collapse. The index ultimately lost about 78% of its value from the peak to its October 2002 low.
The crash did not mean that every internet company failed. Firms with durable businesses and infrastructure survived or later grew substantially. The common mistake is to treat the dot-com bubble as a crash limited to one stock; it was a broad repricing of technology and internet-related companies.