Which 2000 crash followed the bursting of the internet-stock bubble?

The 2000 crash followed the bursting of the dot-com bubble in internet-related stocks.

During the late 1990s, investors poured money into companies associated with the internet. Many firms had little revenue or no profits, yet their share prices rose on expectations of rapid future growth. Venture capital, initial public offerings and enthusiastic online trading reinforced the boom.

The Nasdaq Composite reached 5,048.62 on March 10, 2000. It then fell as investors reassessed unrealistic valuations, rising interest rates made speculative assets less attractive, and numerous technology companies failed to meet expectations. The decline continued for years, with the Nasdaq ultimately losing about 78% from its peak to its October 2002 low.

The crash did not mean that the internet lacked economic value. Companies with durable business models eventually became major successes, while many highly valued start-ups disappeared. The common mistake is to treat every technology company as part of the same failed business model.