The U.S. market decline associated with the bursting of the internet-stock bubble in 2000–2002 is called the dot-com crash.
During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on expected future growth rather than established profits. The Nasdaq Composite reached a closing peak of 5,048.62 on March 10, 2000.
Many companies then failed to meet optimistic expectations. As share prices fell, venture funding dried up, technology firms cut jobs, and numerous internet businesses shut down. The Nasdaq lost about 78 percent from its 2000 peak to its 2002 low.
The crash did not mean that internet technology itself disappeared. Companies with durable products, strong revenues, or sustainable business models survived and later helped drive a new technology expansion. The episode is therefore a warning about speculative valuations rather than a rejection of the internet.