The collapse of technology stocks after the Nasdaq peak in March 2000 is commonly called the dot-com crash.
The Nasdaq Composite reached an intraday peak of 5,132.52 on March 10, 2000. It had risen dramatically during the dot-com bubble, as investors poured money into internet companies and other technology businesses, often despite limited revenues or profits.
After the peak, valuations fell sharply. Many newly listed companies failed, while established technology firms also lost substantial market value. The Nasdaq Composite eventually fell about 78% from its peak to its October 2002 low. The decline affected investment, employment, venture capital, and business expectations.
The crash did not mean that the internet lacked economic value. Companies such as Amazon and eBay survived and later became major businesses, while many speculative ventures disappeared. The dot-com bubble is therefore a useful reminder that a transformative technology can coexist with unrealistic share prices and weak business models.