The 2000–2002 U.S. market collapse caused by the bursting of the internet-stock bubble was called the dot-com crash.
During the late 1990s, investors bid up shares of internet and technology companies, often valuing businesses on expected future growth rather than profits. The Nasdaq Composite reached 5,048.62 on 10 March 2000. As earnings disappointed and interest rates rose, technology shares fell rapidly.
The Nasdaq lost about 78% of its value from its March 2000 peak to its October 2002 low. Many internet companies failed, while established technology firms survived and later benefited from continued growth in online services.
The dot-com crash is distinct from the 2008 housing and banking crisis. It did contribute to a U.S. recession in 2001, but the financial damage was concentrated more heavily in technology and communications shares.