The United States was at the center of the 1990s dot-com crash because the Nasdaq, the major U.S. technology-heavy market, peaked there in March 2000.
The dot-com bubble grew as investors bought internet and technology companies, often valuing businesses on expected future growth rather than profits. The Nasdaq Composite reached an intraday high of 5,132.52 on March 10, 2000. After the peak, many companies failed, share prices plunged, and technology investment contracted.
The crash was international in its effects, but the Nasdaq was the clearest focal point because it listed many fast-growing U.S. technology firms. A common mistake is to call every company involved a dot-com business; the bubble also included telecommunications, software, and hardware firms.
The Nasdaq eventually fell about 78% from its peak to its October 2002 low. Some major technology companies survived and later became dominant, while many speculative firms disappeared.