The 2000–2002 stock-market crash that followed the collapse of technology and internet-company valuations was the Dot-com crash.
During the late 1990s, investors assigned extremely high values to internet and technology companies, often emphasizing expected future growth over current profits. The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. Many companies then missed expectations, ran out of cash, or failed to develop sustainable business models.
The Nasdaq fell sharply after the peak, and numerous dot-com businesses closed or entered bankruptcy. Established technology companies also lost market value, even when they remained profitable. The September 11, 2001 attacks and a broader economic slowdown added to the difficult environment, but the valuation bubble had already begun to deflate.
The crash is often confused with the 2008 financial crisis. The dot-com episode centered on technology-stock valuations and venture financing, whereas 2008 was driven mainly by housing credit, mortgage securities, and financial-system leverage.