The Dot-com crash followed the bursting of a technology-stock bubble centered on internet companies.
During the late 1990s, investors poured money into firms associated with the internet. Many companies had rapidly rising valuations despite limited revenue, continuing losses, or untested business models. The Nasdaq Composite became a key measure of this enthusiasm because it contained many technology and internet shares.
The bubble reached its peak on 10 March 2000, when the Nasdaq closed at 5,048.62. It then declined sharply as investors became less willing to fund speculative companies and as interest-rate expectations changed. The downturn damaged technology shares and led to many business failures, layoffs, and mergers.
Not every internet company was fraudulent or unsuccessful. Amazon and other survivors eventually became major firms, but their later success does not erase the excessive valuations of the bubble period. The dot-com crash was separate from the 2008 mortgage and banking crisis.