Which 1990s technology-sector bubble burst after the Nasdaq peaked in March 2000?

The technology-sector bubble that burst after the Nasdaq peaked in March 2000 was the dot-com bubble.

The dot-com bubble grew during the late 1990s as investors poured money into internet companies, including firms with little revenue, weak business models, or no profits. The belief that online commerce would rapidly transform the economy encouraged exceptionally high valuations and a surge of initial public offerings.

The Nasdaq Composite reached its peak on March 10, 2000, at 5,048.62. It then fell sharply as investors reassessed earnings prospects, rising interest rates made speculative assets less attractive, and many companies failed to meet expectations. The Nasdaq eventually lost about 78 percent of its value from peak to trough in October 2002.

The crash did not mean the internet lacked economic importance. Companies with sustainable models survived or later prospered, while many speculative startups disappeared. The term “dot-com crash” describes the market collapse; “dot-com bubble” identifies the preceding period of extreme valuation.