The 2000–2002 collapse in technology-stock valuations after the internet boom is called the dot-com crash.
During the late 1990s, investors poured money into internet companies, often valuing businesses on expected future growth rather than profits. The Nasdaq Composite became the main public symbol of the boom because it contained many technology and internet shares. The bubble peaked in March 2000.
After investor expectations changed, technology shares fell rapidly. Many internet companies failed, while surviving firms faced falling valuations and tighter access to capital. The Nasdaq Composite ultimately lost about 78% from its March 2000 peak to its October 2002 low.
The dot-com crash is distinct from the 2008 financial crisis. Both damaged markets, but the earlier episode centered on technology-stock valuations and unprofitable internet businesses rather than a banking and mortgage collapse.