Which 2000–2002 crash followed the collapse of internet-company valuations?

The 2000–2002 crash that followed the collapse of internet-company valuations was the dot-com crash.

The technology-heavy Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. Many internet businesses had attracted huge valuations despite limited revenue, because investors expected rapid growth and believed traditional measures of profitability were less important.

After sentiment changed, technology shares fell sharply. The Nasdaq lost roughly 78% of its value from its peak to its October 2002 low. Numerous internet companies failed, while a smaller group of firms with stronger business models survived and later became major technology companies.

The crash is often confused with the dot-com bubble itself. The bubble describes the period of speculative price inflation; the crash describes the subsequent market collapse. The downturn was concentrated in technology and internet shares rather than affecting every asset equally.