The market collapse after the late-1990s technology stock bubble burst was the dot-com crash.
The dot-com crash followed a surge in technology and internet-company share prices during the late 1990s. Many businesses attracted large valuations despite limited revenue, continuing losses, or untested business models. The Nasdaq Composite reached a peak on March 10, 2000, then began a prolonged decline.
The crash affected investors, employees, and companies across the technology sector. Numerous internet start-ups failed, while surviving firms faced tighter financing and much more demanding expectations about profits and cash flow. The decline also contributed to a US recession in the early 2000s, although the crash was not its sole cause.
The dot-com bubble and crash are sometimes confused with the 2008 financial crisis. They were separate episodes: the earlier one centered on technology valuations, while the later crisis centered on housing finance, banks, and credit markets.