The crash that followed the bursting of the U.S. dot-com bubble after the Nasdaq peaked in March 2000 was the Dot-com crash.
The Nasdaq Composite reached 5,048.62 on March 10, 2000, after years of enthusiasm for internet and technology companies. Many businesses had little revenue or profit, yet attracted enormous investment because traders expected rapid online growth. When expectations changed, technology shares fell and investors withdrew funding from speculative companies.
The Nasdaq lost about 78% of its value from its peak to its October 2002 low. Numerous internet start-ups failed, while some established technology firms survived and later became major companies. The crash is not the same as the 2008 housing-related collapse: the dot-com episode centered on equity valuations and technology speculation, whereas 2008 centered on credit, housing, and banking. The internet itself continued expanding despite the failure of many early businesses.