Which investment bubble’s collapse caused the early-2000s dot-com stock-market crash?

The collapse of the dot-com bubble caused the early-2000s dot-com stock-market crash.

During the late 1990s, investors poured money into internet companies, often valuing businesses on website traffic or future growth rather than profits. The Nasdaq Composite rose dramatically, reaching a peak on March 10, 2000.

Many companies then failed to meet expectations, while rising interest rates and tighter financing reduced enthusiasm for speculative technology shares. The Nasdaq fell steeply from its peak, and the downturn continued into 2002.

The dot-com crash is sometimes confused with the 2008 financial crisis because both damaged technology and broader equities. They had different immediate causes: the dot-com collapse centered on internet-stock valuations, whereas the 2008 crash was closely linked to housing credit and financial institutions.