The 2000–2002 collapse that followed the bursting of the technology-stock bubble is called the dot-com crash.
During the late 1990s, investors poured money into internet and technology companies. Many firms had rapidly rising valuations despite limited revenue or profits. The Nasdaq Composite, heavily weighted toward technology shares, reached a record closing level of 5,048.62 on 10 March 2000.
Confidence weakened soon afterward. Technology shares fell sharply, and the Nasdaq continued declining until October 2002. Numerous internet companies failed, while surviving businesses faced layoffs, restructuring, and much lower valuations. The crash also reduced investment in technology and telecommunications.
The dot-com crash is sometimes confused with the 2008 global financial crisis. The earlier event centered on overvalued technology and internet equities, whereas the later crisis centered heavily on housing finance, mortgage securities, and banking-system stress.