Nasdaq was the U.S. technology exchange at the center of the dot-com bubble that burst in 2000.
Nasdaq listed many internet, software, and telecommunications companies, including both established firms and young businesses with little or no profit. Investor enthusiasm pushed technology valuations to extraordinary levels during the late 1990s.
The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000. After that peak, investors became less willing to pay high prices for companies lacking sustainable earnings. The index fell dramatically over the following years and reached a bear-market low in October 2002.
The dot-com crash is often described as a stock-market crash, but it was also a broader investment and business cycle. Many start-ups failed, venture funding contracted, and telecommunications companies faced heavy losses. The collapse did not mean that the internet lacked value; companies with durable business models eventually became major enterprises.