The U.S. stock-market collapse that began in 2000 after technology shares peaked is commonly called the dot-com crash.
It followed the rapid rise of internet-related companies during the late-1990s dot-com bubble. Investors often valued firms on website traffic, projected growth, or the promise of future profits rather than established earnings. The Nasdaq Composite, heavily weighted toward technology companies, reached a record closing level of 5,048.62 on March 10, 2000.
The bubble then deflated as investors became less willing to fund unprofitable internet ventures. Many startups failed, while even established technology companies suffered steep share-price declines. The Nasdaq lost roughly 78% of its value from its 2000 peak to its 2002 low.
The dot-com crash is sometimes confused with the broader 2000–2002 bear market, which also affected companies outside the internet sector. It is also distinct from the 2008 crash, which centered on credit and housing-market problems.