The 2000–2002 collapse centered on Internet-company shares was the dot-com crash.
During the late 1990s, investors poured money into businesses associated with the expanding World Wide Web. Many companies received extremely high valuations despite limited revenue, continuing losses or untested business models. The technology-heavy Nasdaq Composite rose dramatically before reaching a closing peak on March 10, 2000.
After that peak, investors began reassessing growth forecasts and profitability. Rising interest rates, disappointing earnings and failures among prominent Internet businesses accelerated the sell-off. The Nasdaq eventually fell about 78% from its peak to its October 2002 low.
The crash did not mean that the Internet lacked economic value. Companies with durable technology and business models survived or later prospered, while many speculative ventures disappeared. The dot-com bubble is therefore a useful distinction from a single-day crash: it describes a valuation boom followed by a prolonged market decline.