What market bubble burst when the Nasdaq Composite peaked on March 10, 2000?

The market bubble that burst after the Nasdaq Composite peaked on March 10, 2000, was the dot-com bubble.

The boom centered on internet-related companies and the belief that rapid online growth would justify extremely high valuations. Many businesses attracted investment despite limited revenue, persistent losses, or unproven business models. The Nasdaq Composite reached 5,048.62 intraday on March 10, 2000, before beginning a prolonged decline.

The collapse was not caused by one failed company. Rising interest rates, tighter financing, disappointing results, and changing expectations about technology businesses all contributed to the reversal. Numerous internet startups failed, while a smaller group of durable firms survived and later became major companies.

The dot-com crash is distinct from the 2008 financial crisis. The former was concentrated heavily in technology and internet shares; the latter was closely tied to housing finance, credit markets, and banking-system stress.