The 2000–2002 market collapse that followed the bursting of technology-company valuations was the dot-com crash.
During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on projected growth rather than current profits. The Nasdaq Composite rose rapidly and reached a closing peak of 5,048.62 on March 10, 2000.
Expectations changed as interest rates rose, competition increased, and many companies failed to produce sustainable earnings. The Nasdaq then lost most of its value over the following years, while numerous internet startups closed or were acquired. The crash also affected venture capital, technology employment, and corporate investment.
The dot-com crash is closely related to the dot-com bubble, but the terms refer to different stages. The bubble was the period of inflated valuations; the crash was the subsequent collapse. Not every technology company failed: firms such as Amazon and eBay survived and later became major businesses, while many speculative ventures disappeared.