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.
💡 Run QQQ from early 1999 to see the full bubble and crash.
Explore This Event
Run real numbers, calculate your biggest miss, or relive this market moment in a game.
Share This Moment
Related Events
1920s–1930s
The Great Crash of 1929
The Dow fell 89% in 3 years. It took 25 years to recover.
1920s–1930s
Black Tuesday — The Stock Market Crash Begins
16.4 million shares traded in a single day. Fortunes vanished overnight.
1980s
Black Monday — Largest Single-Day Crash
The Dow lost 22.6% in a single day. Markets bounced back in 2 years.
1990s
Gulf War Market Shock — 1990
S&P 500 fell 20% as Iraq invaded Kuwait. Oil spiked 70% overnight.
Continue through the timeline
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.
Next suggested tool
Model recovery timelines with compound assumptionsEducational only - not financial advice.
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.
Run in calculator
Replay this event with prefilled dates and a sample amount to compare alternate entry points.
Open calculator with this event preset →FAQ
What was the dot-com bubble?
It was a period of extreme valuation expansion in internet and technology stocks during the late 1990s. When expectations reset, many high-multiple names fell sharply and a multi-year bear market followed.
How did NASDAQ perform during the unwind?
NASDAQ fell 78% during 2000–2002. The drawdown highlighted valuation risk when prices diverge from underlying earnings power.
What would $10,000 invested in QQQ near the 2000 peak be worth today?
Use our Investment Calculator with QQQ from March 10, 1999 to test this scenario directly. Run QQQ from early 1999 to see the full bubble and crash. Past performance does not guarantee future results.
How long did it take to recover from the dot-com crash?
Recovery depended on what was held. Broad indices and profitable firms recovered over time, while many speculative names never returned to prior highs.
Why does the dot-com crash still matter today?
It remains a core case study in valuation discipline, concentration risk, and the gap between narrative momentum and durable cash-flow fundamentals.
Related links
All calculations are hypothetical and educational only. Data sources: official financial exchanges and public datasets. View full methodology →