History of the Nasdaq: 1971 to Today
The world's first electronic stock market opened at 100. The timeline from quote screen to AI era — with the boom, the bust and the numbers.
February 8, 1971: the first electronic stock market
The Nasdaq opened on February 8, 1971, with its Composite index set to 100. It was not, at first, an exchange at all: the National Association of Securities Dealers built an automated quotation system — NASDAQ — to put firm bid/ask quotes for over-the-counter stocks on a screen, after a 1963 SEC study criticized the opacity of the OTC market. No trading floor, no paper — which is why it is remembered as the world's first electronic stock market.
From quote screen to exchange
For its first years Nasdaq only displayed quotes; trades still happened over the phone. But the listing venue of least friction became the natural home of young technology companies: Intel was quoted from the beginning, Apple listed in 1980, Microsoft in 1986, and by 1994 Nasdaq had passed the NYSE in annual share volume. In 2006 it became a licensed national securities exchange, and in 2007 merged with Nordic operator OMX. What began as a quote feed ended up running markets on several continents.
1985: the Nasdaq 100 — and 1999: QQQ
In January 1985 Nasdaq carved its 100 largest non-financial listings into a new index, the Nasdaq 100. It stayed a professionals' benchmark until March 10, 1999, when the QQQ trust listed and became one of the fastest-adopted ETFs ever. Since 2000, the Nasdaq 100's calendar years have averaged +18.1% — best year 1999 at +102.0%, worst 2008 at −41.9% — the year-by-year ledger holds the record.
The dot-com round trip
No index owns a boom-and-bust like the Composite owns the dot-com era. It peaked at 5,049 on March 10, 2000, then gave back −77.9% to bottom at 1,114 on October 9, 2002. The recovery took until April 23, 2015 — 15 years peak to peak. The log year-over-year chart shows the bubble's footprint better than any prose; the Nasdaq 100 drawdown register lists every decline since 1986.
The Composite today
From its base of 100 in 1971, the Composite stands at 26,282 as of 2026-07-10 — a 263× multiple, compounded at +10.7% per year across 55 years. Each generation of the market's leadership — PCs, the internet, mobile, now AI — has listed, boomed and consolidated here. The full 1971-to-today chart is the cleanest single picture of American technology's market history.
Composite, Nasdaq 100, QQQ — which is which?
Three names, three things. The Composite is every Nasdaq-listed common stock — thousands of them — and is the number newscasts quote. The Nasdaq 100 is the 100 largest non-financial listings, far more concentrated in mega-cap tech. QQQ is the ETF that tracks the Nasdaq 100. For the differences in behavior, see Nasdaq vs S&P 500: 40 years compared.
FAQ
When was the Nasdaq founded?
February 8, 1971, by the National Association of Securities Dealers (NASD). The Composite index started that day at a base of 100.
Why is the Nasdaq called the first electronic stock market?
It launched with no trading floor: an automated screen-based quotation system replaced the phone-and-paper over-the-counter market. Electronic quote display came first; electronic execution followed later.
What was the Nasdaq's dot-com peak, and how far did it fall?
The Composite peaked at 5,049 on March 10, 2000 and fell −77.9% to 1,114 by October 9, 2002.
How long did the Nasdaq take to recover from the dot-com crash?
15 years: the Composite did not regain its 2000 peak until April 23, 2015.
What is the difference between the Nasdaq Composite and the Nasdaq 100?
The Composite covers every Nasdaq-listed common stock; the Nasdaq 100 takes only the 100 largest non-financial companies. QQQ is the ETF tracking the Nasdaq 100.
Numbers computed from /api/nasdaq/composite.json and /api/ndx/annual-returns.json, refreshed each trading day. Institutional dates from Nasdaq, Inc. and SEC records.