This Day In Market History: Internet Stocks Spark The Biggest NASDAQ Plunge

Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.

What Happened

On this day in 2000, the NASDAQ plummeted a then-record 229.46 points to a 3,901.69 close.

Where Was The Market

The S&P 500 closed down 3.8 percent at 1,399.42 and the Dow Jones Industrial Average closed down 3 percent at 10,997.93.

What Else Was Going On In The World

The euro turned a year old, and Bill Belichick resigned from the New York Jets a day after accepting the head coaching position.

The Dot-Com Bubble Begins To Blow

Days after the Y2K bug failed to cripple civilization, wary Americans witnessed a 5.6-percent decline in the NASDAQ driven largely by internet stocks. Both CMGI and Yahoo! conceded a third of their opening values.

The dot-com bubble didn’t officially peak until the following week, when America Online announced its merger with Time Warner Inc TWX, and the corresponding bull market lasted another nine weeks before the bubble burst and the market plunged.

Internet stocks began steadily tanking in March when leading tech companies like Dell and Cisco Systems, Inc. CSCO began selling positions, inciting widespread panic sales and prompting the eventual fall of many publicly-traded online firms.

Related Links:

This Day In Market History: Apple Incorporated

This Day In Market History: NYSE Volume Hits 20th Century Low

NASDAQ chart from Wikimedia.