The 2000–2002 collapse in technology shares after the Nasdaq peak was the dot-com crash.
During the late 1990s, investors poured money into internet companies, including many businesses with little revenue or no profits. The Nasdaq Composite rose rapidly as expectations about online commerce and technology replaced traditional valuation measures. The index reached its closing peak on March 10, 2000.
After the peak, rising interest rates, disappointing earnings, and a reassessment of speculative business models caused technology shares to fall sharply. The Nasdaq ultimately lost about 78% of its value from peak to trough in October 2002. The crash did not mean that the internet lacked economic importance; companies with durable products and strong finances eventually became major businesses. The term refers to the bursting of the bubble, not to a single day like Black Monday.