The 2000–2002 stock-market collapse centered on technology companies was the dot-com crash. It followed the bursting of the dot-com bubble, a period when investors assigned exceptionally high values to internet-related businesses.
The Nasdaq Composite reached a closing peak of 5,048.62 on March 10, 2000. Many companies had limited revenue or no profits, yet their share prices rose rapidly because investors expected internet use to create enormous future earnings. When confidence changed, technology shares fell, and numerous internet companies failed or were acquired.
The crash is sometimes treated as identical to the entire dot-com bubble, but the terms describe different stages. The bubble was the buildup in valuations; the crash was the subsequent decline. The Nasdaq eventually lost roughly 78% from its peak to its October 2002 low, while some major technology companies survived and later became dominant businesses.