Which 2000–2002 crash followed the burst of excessive technology-stock valuations?

The 2000–2002 crash that followed excessive technology-stock valuations was the dot-com crash. During the late 1990s, investors poured money into internet-related companies, often valuing firms on expected future growth rather than profits or established business models.

The Nasdaq Composite reached a record closing level of 5,048.62 on 10 March 2000. After confidence weakened, many technology shares collapsed. The Nasdaq fell roughly 78% from its peak to its October 2002 low, while numerous internet companies failed or were acquired at much lower valuations.

The crash did not mean that the internet lacked economic value. Companies with durable revenue, strong technology, or sustainable business models eventually recovered or grew. A frequent mix-up is treating the dot-com bubble and crash as a single day; they were a multi-year cycle of speculation, falling prices, and business failures.