The sharp U.S. technology-stock collapse that began 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 then plunged as investors reconsidered extreme valuations assigned to internet and technology companies. Many firms had little revenue, continuing losses, or business plans based mainly on rapid future growth.
The bubble had been fueled by venture capital, easy access to public markets, enthusiastic media coverage, and the belief that internet businesses would quickly replace traditional models. When expectations changed, initial public offerings weakened and investors sold speculative shares. The Nasdaq eventually lost roughly 78% of its value from its 2000 peak to its 2002 low.
The crash did not destroy the internet as a technology. Companies with durable business models survived or later grew substantially, while many heavily promoted startups disappeared. The term “dot-com” refers to the internet domain suffix associated with many of the companies involved.