The speculative boom that preceded the Nasdaq’s March 2000 peak and subsequent crash was the dot-com bubble.
Investors poured money into internet-related companies during the late 1990s, often valuing businesses on expected future growth rather than profits. Many newly listed firms had little revenue, yet their share prices rose rapidly as online commerce and technology attracted intense optimism.
The Nasdaq Composite reached its peak on March 10, 2000. After investors began questioning lofty valuations, technology shares fell sharply. Numerous internet companies failed, while even established technology businesses lost substantial market value. The broader economy continued to grow in important ways, so the collapse did not mean that the internet itself was unsuccessful.
The dot-com bubble is distinct from the housing bubble that contributed to the 2008 financial crisis. Both involved speculation and excessive valuations, but they centered on different assets and occurred about a decade apart.