The stock-market crash that began after the NASDAQ peaked in March 2000 is known as the dot-com crash.
The NASDAQ Composite reached 5,048.62 on March 10, 2000, after years of enthusiasm for internet and technology companies. Many firms had little revenue or profit, yet investors assigned them extremely high valuations based on expected future growth. When confidence weakened, technology shares fell rapidly and the speculative bubble deflated.
The collapse damaged venture-funded startups, reduced technology investment, and contributed to a U.S. recession in 2001. It did not mean that the internet itself was a failed idea: companies with durable business models eventually became major firms. The crash is also called the bursting of the dot-com bubble. It differs from the 2008 crisis, which centered much more directly on housing finance, banks, and credit markets.