The 2000–2002 market collapse caused largely by the bursting of the technology-stock bubble was the Dot-com crash. Technology and internet companies had attracted extraordinary investor enthusiasm during the late 1990s, even when many had little revenue or no profits.
The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. As investors reconsidered unrealistic valuations, technology shares fell sharply and many internet startups failed. The Nasdaq eventually lost about 78% of its value from its peak to its October 2002 low.
The collapse was not caused by the failure of every internet business. Companies with strong business models survived and later became major firms, while the crash eliminated many speculative ventures. The event is also distinct from the 2008 housing and credit crisis, although both involved high valuations and excessive confidence.