The 2000–2002 market crash that followed the rapid rise and collapse of internet-company shares was the Dot-com crash.
The preceding dot-com bubble pushed technology and internet stocks to extraordinary valuations. Investors often focused on website traffic and future growth while many companies had little revenue or no profits. The Nasdaq Composite reached 5,048.62 on March 10, 2000, before falling sharply.
The collapse reduced the value of many technology shares and contributed to a recession in the United States. Numerous internet startups failed, while a smaller group of companies with durable business models survived and later became major technology firms.
The crash is not identical to the later 2008 housing and financial crisis. The dot-com episode centered primarily on technology-stock valuations, whereas 2008 was closely tied to housing finance, mortgages, and banking-system stress.