The 2000–2002 collapse in technology-stock valuations is commonly called the dot-com crash.
During the late 1990s, investors poured money into internet companies, many of which had little revenue or no profits. Easy access to capital, enthusiasm about the commercial internet, and heavy promotion pushed technology valuations to extreme levels. The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000.
After confidence turned, technology shares fell rapidly. The Nasdaq lost about 78% of its value between its 2000 peak and its October 2002 low. Numerous internet start-ups failed, while established companies with stronger businesses generally survived and later benefited from the internet’s long-term growth.
The dot-com crash is not identical to the broader early-2000s recession, though the events overlapped. It also differs from the 2008 housing and credit crisis. The nickname refers to the collapse of speculative internet-company valuations, especially in the technology-heavy Nasdaq market.