The market phenomenon that followed the 2000 peak of technology shares and became a major stock-market crash was the Dot-com crash.
During the late 1990s, investors poured money into internet-related companies. Many firms had little revenue or no profits, but their share prices rose on expectations of rapid online growth. The Nasdaq Composite became a central measure of this technology speculation.
The bubble reached its peak on 10 March 2000, when the Nasdaq closed at 5,048.62. It then fell sharply as investors reassessed technology valuations, interest rates rose, and numerous internet businesses failed or lost access to financing.
By October 2002, the Nasdaq had lost about 78 percent from its peak. The crash did not eliminate the internet economy: companies such as Amazon survived and later expanded, while many weaker firms disappeared. The collapse is therefore distinct from the 2008 financial crisis, which centered on housing and credit markets.