The dot-com stock-market bubble reached its peak in 2000 before beginning its historic collapse.
The technology-heavy Nasdaq Composite reached 5,048.62 on March 10, 2000. Investors had pushed internet and technology-company valuations to extraordinary levels, often prioritizing website traffic and future potential over revenue or profits.
After the peak, the Nasdaq fell sharply as interest rates rose, earnings disappointed, and investors reassessed businesses with weak financial foundations. Many start-ups failed, while several stronger companies survived and later became major parts of the digital economy.
The bubble is often confused with the broader technology sector’s long-term development. The crash destroyed enormous paper wealth, but it did not mean the internet itself was a failed idea. Companies such as Amazon and eBay survived the downturn, although their share prices also suffered substantial declines.