What market bubble burst in 2000 after rapid rises in internet-company shares?

The market bubble that burst in 2000 after rapid rises in internet-company shares was the dot-com bubble.

The bubble formed during the late 1990s as investors poured money into businesses associated with the growing World Wide Web. Many companies had little revenue, no profits, or uncertain business models, but their share prices rose sharply because investors expected enormous future growth.

The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. It then fell steeply as investors reassessed technology valuations, interest rates rose, and a wave of unprofitable companies failed. The downturn affected technology shares worldwide and contributed to a U.S. recession in the early 2000s.

The crash did not mean that the internet lacked economic value. Companies with durable technology and revenue models survived or later became major businesses. The common mistake is to treat every technology company as a dot-com failure; the label refers to the speculative bubble and its collapse, not to the internet itself.