The 2000–2002 crash caused by bursting technology-stock speculation was the Dot-com crash.
In the late 1990s, investors placed exceptionally high valuations on internet and technology companies. Many firms had little revenue or a path to profit, but rising share prices encouraged more fundraising and speculation. The Nasdaq Composite reached 5,048.62 on March 10, 2000, before a long decline.
The bubble burst as investors reassessed technology-company earnings, interest rates, and business models. Numerous internet startups failed, while established technology companies also lost substantial market value. The Nasdaq eventually fell roughly 78 percent from its peak to its October 2002 low.
The crash did not mean that the internet lacked economic importance. Companies such as Amazon and eBay survived and later expanded, while many failed firms had entered markets too early or lacked sustainable finances. “Dot-com crash” refers to the market collapse; “dot-com bubble” refers to the preceding speculative boom.