The market collapse that followed the dot-com bubble’s peak in March 2000 is called the dot-com crash.
Technology and internet companies had attracted enormous investment during the late 1990s. Many firms had little revenue, no profits, or business models that depended mainly on attracting more investors. The Nasdaq Composite reached its peak on March 10, 2000, before falling sharply over the following years.
The crash damaged technology shares and contributed to a broader U.S. economic downturn. Companies failed, venture funding dried up, and many online businesses disappeared. The September 11 attacks in 2001 added further pressure to already weak markets, but they did not cause the bubble’s original burst.
The dot-com crash is not the same as the 2008 financial crisis. The earlier episode centered on overvalued technology equities, while the later crisis was rooted mainly in housing finance, mortgages, and banking-system stress.