The Dot-Com Bubble Burst
NASDAQ fell 78%. It took 15 years to recover to 2000 levels.
The NASDAQ Composite peaked at 5,048 on March 10, 2000, then collapsed 78% over 2.5 years as internet speculation imploded. Companies like Pets.com, Webvan, and eToys burned through billions before vanishing. The index wouldn't return to its 2000 peak until April 2015 — 15 years later. QQQ (NASDAQ 100 ETF) data begins in 1999.
Key Facts
- NASDAQ fell 78% from March 2000 to October 2002
- $5 trillion in market value was wiped out
- The NASDAQ didn't recover its 2000 peak until April 2015 — 15 years
Market Impact
NASDAQ
-78.0%
2000–2002
S&P 500
-49.0%
2000–2002
QQQ (NASDAQ 100)
-83.0%
2000–2002
QQQ Performance - From Event Start
Monthly price change (%) from March 10, 2000. Extended 12 months beyond October 9, 2002 for recovery context.
💡 Run QQQ from early 1999 to see the full bubble and crash.
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What this means
- Single historical episodes are context, not forecasts. Market paths can differ meaningfully in future cycles.
- Returns shown around major events can be highly sensitive to entry and exit dates, so compare multiple windows.
- Risk management and diversification matter because large drawdowns and sharp rebounds often cluster together.
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What happened
The NASDAQ Composite peaked at 5,048 on March 10, 2000, then collapsed 78% over 2.5 years as internet speculation imploded. Companies like Pets.com, Webvan, and eToys burned through billions before vanishing. The index wouldn't return to its 2000 peak until April 2015 — 15 years later. QQQ (NASDAQ 100 ETF) data begins in 1999.
Why it mattered
- NASDAQ fell 78% from March 2000 to October 2002
- $5 trillion in market value was wiped out
- The NASDAQ didn't recover its 2000 peak until April 2015 — 15 years
Worked example
Historical hypothetical - for educational purposes only. Not investment advice.
Scenario
$10,000 in QQQ at the start of Dot-Com Crash
Hypothetical outcome
Fell to ~$2,200 at the trough (-78%)
Key lesson
Investors who held through the trough - rather than selling at the bottom - participated in the subsequent recovery. Long-term holders of broad indices eventually saw full recovery and new highs.
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What happened during Dot-Com Crash?
The NASDAQ Composite peaked at 5,048 on March 10, 2000, then collapsed 78% over 2.5 years as internet speculation imploded. Companies like Pets.com, Webvan, and eToys burned through billions before vanishing. The index wouldn't return to its 2000 peak until April 2015 — 15 years later. QQQ (NASDAQ 100 ETF) data begins in 1999.
How did NASDAQ perform during this period?
NASDAQ fell 78% during 2000–2002. While painful for investors who sold, those who held through the decline often participated in the subsequent recovery.
What would $10,000 invested in QQQ at Dot-Com Crash be worth today?
Use our Investment Calculator with QQQ starting 1999-03-10 to find the precise current value. Run QQQ from early 1999 to see the full bubble and crash. Historical performance does not guarantee future results.
How long did it take markets to recover from Dot-Com Crash?
NASDAQ fell 78%. It took 15 years to recover to 2000 levels. Recovery timelines varied by asset class: broad indices like the S&P 500 eventually recovered to pre-crash levels, though the duration ranged from months (2020) to years (2008) or even decades (1929). Our timeline tool lets you run these exact recovery scenarios.
What investing lessons does Dot-Com Crash teach?
Market crashes are a recurring feature of investing, not an anomaly. Dot-Com Crash reinforces several key lessons: diversification reduces but doesn't eliminate crash risk; panic-selling at the bottom locks in losses; and historically, patient investors who held through or bought during crashes were rewarded over multi-year horizons. Use our calculator to run specific "what if I had bought / sold at this exact point" scenarios.
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All calculations are hypothetical and educational only. Data sources: official financial exchanges and public datasets. View full methodology →