The Nasdaq Composite became the leading symbol of the dot-com crash after peaking in March 2000.
The Nasdaq Composite contains thousands of companies listed on the Nasdaq stock exchange and has a strong concentration in technology and growth businesses. During the late 1990s, investors bid up internet and technology shares, often valuing companies on expected future growth rather than current profits.
The index reached a record closing level of 5,048.62 on 10 March 2000. After the bubble burst, many internet companies failed, while surviving technology firms lost large portions of their market value. The Nasdaq ultimately fell about 78% from its peak to its October 2002 low.
The crash did not mean that the internet lacked economic importance. Instead, it showed that a transformative technology can coexist with unsustainable valuations. Companies such as Amazon and eBay survived the collapse, while many firms with weak business models disappeared. The Nasdaq's technology weighting made the damage especially visible.