The market crash that followed the bursting of the late-1990s technology bubble is called the dot-com crash.
During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on expected future growth rather than profits. The Nasdaq Composite became a leading indicator of this enthusiasm and reached a peak on March 10, 2000.
After confidence weakened, technology shares fell sharply. Many newly listed companies failed, while surviving firms faced pressure to demonstrate revenue and earnings. The Nasdaq Composite eventually lost roughly 78 percent from its peak to its October 2002 low.
The dot-com crash is sometimes confused with the 2008 financial crisis. The earlier collapse centered on technology-stock valuations and venture financing; the 2008 crisis centered on housing, mortgages, banks, and credit markets. Some major internet companies did survive and later became highly valuable.