The 2000–2002 U.S. stock-market crash caused largely by the bursting of the technology bubble was called the dot-com crash.
During the late 1990s, investors placed exceptionally high valuations on internet and technology companies. Many businesses with little revenue or no profits attracted substantial investment because markets expected rapid online growth. The Nasdaq Composite, heavily weighted toward technology shares, became the clearest measure of this enthusiasm.
The bubble began to deflate in 2000. The Nasdaq reached a closing peak of 5,048.62 on March 10, 2000, then fell for roughly two years. The September 11 attacks, corporate accounting scandals, and a broader economic slowdown added to the difficult environment, although the crash began before those later developments.
The dot-com crash is not identical to the 2008 financial crisis. The earlier episode centered on technology-stock valuations and business expectations, while 2008 involved housing finance, mortgage securities, banks, and credit markets. Some surviving internet companies later became highly successful, showing why the collapse of speculative valuations did not mean the internet itself lacked economic importance.