The 2000–2002 U.S. stock-market collapse linked to internet companies was called the dot-com crash.
The crash followed a period of intense enthusiasm for internet businesses. Investors assigned very high values to companies with online plans, even when those companies had little revenue or no profits. The Nasdaq Composite, heavily weighted toward technology shares, became the clearest symbol of the boom.
The Nasdaq peaked in March 2000 and then fell sharply as investors reassessed technology valuations. Many newly listed companies failed, while established technology firms also lost substantial market value. The downturn continued into 2002.
The dot-com crash is distinct from the 2008 financial crisis: the earlier episode centered on technology-stock valuations, whereas 2008 was driven mainly by credit, housing, and banking problems. Some internet companies survived and later became major businesses.