The Nasdaq Composite fell about 78% from its March 2000 peak to its October 2002 low during the dot-com crash. The index was especially exposed to internet and technology companies.
The Nasdaq reached an intraday high of 5,132.52 on March 10, 2000. Many technology shares had risen rapidly as investors anticipated enormous profits from internet businesses. Numerous companies had little revenue or no profits, and some business models depended heavily on continued access to investor funding.
When expectations changed, technology shares declined sharply. Higher interest rates, slowing technology spending, failed business plans, and a series of bankruptcies deepened the downturn. The Nasdaq bottomed at 1,108.49 on October 9, 2002.
The crash did not destroy the internet as a technology. Instead, it removed much speculative value and left stronger firms positioned for later growth. The index eventually surpassed its 2000 peak in 2015.