The 2000–2002 U.S. market collapse that followed the burst of the internet-stock bubble was the dot-com crash. During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on expected future growth rather than established profits.
The Nasdaq Composite reached 5,048.62 intraday on 10 March 2000. As investors reassessed technology companies’ prospects, many share prices collapsed. The Nasdaq continued falling until October 2002, losing roughly 78% from its peak to its trough. Numerous internet companies failed, while a smaller group of firms with durable business models survived and later expanded.
The dot-com crash was not the same as the 2008 financial crisis. It centered on technology-stock valuations and business failures, whereas 2008 involved a severe banking and housing-credit crisis. The period also helped establish the lasting use of “dot-com” for internet-focused companies and ventures.