The U.S. stock-market collapse associated with Internet companies from 2000 to 2002 is called the dot-com crash.
During the late 1990s, investors poured money into Internet businesses, often valuing companies on expected future growth rather than profits. The Nasdaq Composite, heavily weighted toward technology shares, rose from 1,000 in 1995 to a peak of 5,048.62 on March 10, 2000.
The market then reversed. Higher interest rates, disappointing earnings, failed business models, and waning enthusiasm caused technology shares to fall. The Nasdaq lost roughly 78% of its value from its 2000 peak to its October 2002 low. Many companies shut down, while a smaller group with durable business models survived.
The dot-com crash was not the same as the 2008 financial crisis. It centered on equity valuations and technology firms, whereas 2008 involved housing finance, mortgage securities, banks, and a global credit freeze. Some Internet infrastructure built during the boom later supported major technology companies.