The technology-focused market bubble that burst when the Nasdaq Composite fell sharply after March 2000 was the dot-com bubble.
The bubble formed during the 1990s as investors poured money into internet and technology companies. Many firms had exciting business ideas but little revenue, no profits, or unclear paths to profitability. The rapid spread of the World Wide Web encouraged expectations that online businesses would transform commerce immediately.
The Nasdaq Composite reached a closing peak of 5,048.62 on March 10, 2000. After that peak, technology shares declined severely, and the downturn spread across much of the equity market. The bubble’s collapse is often called the dot-com crash, although the bubble itself refers to the period of inflated valuations before the fall.
The collapse did not mean the internet lacked economic value. Companies with durable infrastructure, strong products, and sustainable finances eventually became important businesses. A common mistake is to treat every technology company as equally speculative; the crash affected firms with very different business models and financial positions.