The 2000 market crash that followed the bursting of a technology-stock investment bubble was the Dot-com crash.
During the late 1990s, investors placed exceptionally high valuations on internet and technology companies. Many firms had little revenue or no profits, yet their stock prices rose rapidly as investors expected the internet to transform commerce.
The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. It then fell steeply as investors questioned whether technology companies could justify their valuations. The decline continued for more than two years, and many internet startups failed or were acquired at much lower prices.
The crash did not mean that the internet lacked economic value. Companies such as Amazon and eBay survived and later expanded, while much speculative capital disappeared. The episode is often confused with the 2008 financial crisis, but the Dot-com crash centered on technology-stock valuations, whereas 2008 centered on housing finance, credit, and banking-system stress.