The dot-com bubble burst in March 2000, beginning the major stock-market decline associated with technology shares.
The bubble centered on internet-related companies, many of which had little revenue or no profit but received extremely high valuations. Investors expected rapid growth from online commerce and digital services.
The technology-heavy Nasdaq Composite peaked at 5,048.62 on March 10, 2000. It then fell dramatically, losing about 78% of its value by October 2002. Numerous internet startups failed, while a smaller group of durable companies survived.
The dot-com bubble is distinct from the 2008 financial crisis. The earlier episode was concentrated in technology and speculative growth shares; the later crisis was rooted largely in housing finance, credit markets, and banking-system stress.