The 2000–2002 market crash caused largely by collapsing internet-company valuations was called the Dot-com crash.
The crash followed the Dot-com bubble, when investors poured money into internet-related companies and often valued businesses on projected growth rather than profits. The Nasdaq Composite reached 5,048.62 on March 10, 2000. Many technology shares then plunged as investors reassessed unrealistic expectations.
The Nasdaq lost roughly 78 percent from its peak to its October 2002 low. Numerous companies failed, while some surviving firms became important technology businesses. The crash did not mean that the internet itself had failed; instead, it showed that useful technology can coexist with unsustainable valuations. It is also distinct from the 2008 crash, which centered on credit, housing, and financial institutions.