Which investment craze’s collapse marked the start of the 2000–2002 dot-com stock-market crash?

The collapse of the dot-com bubble marked the start of the 2000–2002 dot-com stock-market crash. The bubble centered on internet-related companies whose valuations rose rapidly despite many having little revenue, continuing losses, or untested business models.

The Nasdaq Composite, heavily weighted toward technology companies, peaked at 5,048.62 on March 10, 2000. As investors reassessed unrealistic expectations, internet and technology shares fell sharply. The Nasdaq ultimately lost roughly 78% of its value from its peak to its October 2002 low.

The crash did not mean that the internet itself was a failure. Companies such as Amazon survived and later expanded, while many highly speculative firms disappeared. A common mix-up is treating the dot-com crash as the 2008 financial crisis; the earlier event was primarily a technology-stock valuation collapse, whereas 2008 centered on credit, housing, and banking.