The dot-com crash was the market decline that followed the bursting of the dot-com bubble around 2000.
Internet-related companies had attracted huge investment during the late 1990s, even when many had little revenue or no profits. The Nasdaq Composite, heavily weighted toward technology shares, reached a peak of 5,048.62 on March 10, 2000. As investors reassessed unrealistic valuations, technology stocks fell sharply.
The collapse was not caused by one company or one trading day. Rising interest rates, disappointing business results, failed online ventures, and changing expectations all contributed. Many startups ran out of cash when investors stopped funding companies based mainly on future growth promises.
The crash is distinct from the 2008 global financial crisis, which centered on housing finance, mortgages, banks, and credit markets. Some established technology companies survived and later expanded, while numerous speculative internet firms disappeared.