Which investment bubble burst in 2000, helping trigger a major stock-market decline?

The dot-com bubble burst in 2000, helping trigger a major stock-market decline.

During the late 1990s, investors poured money into internet-related companies. Many businesses received very high valuations despite limited revenue, large losses, or untested business models. The Nasdaq Composite, heavily weighted toward technology shares, became the clearest measure of this enthusiasm.

The Nasdaq reached a peak of 5,048.62 on March 10, 2000. After the bubble burst, technology shares fell dramatically, and many internet companies failed or were acquired. The Nasdaq eventually lost about 78% of its value from its peak to its October 2002 low.

The crash did not mean the internet lacked commercial value. Companies such as Amazon and eBay survived and later grew substantially, while many speculative ventures disappeared. The common mistake is to equate the bubble with all technology companies: the collapse mainly reflected extreme valuations and financing expectations, not the failure of the internet itself.