Which sector’s share-price collapse defined the 2000–2002 dot-com crash?

Internet companies defined the 2000–2002 dot-com crash.

During the late 1990s, investors poured money into businesses connected to the commercial internet. Many firms had little revenue, no profits, or untested business models, but their share prices rose rapidly because investors expected enormous future growth. The Nasdaq Composite became the leading U.S. market indicator for this technology-heavy speculation.

The bubble began to unwind after the Nasdaq peaked on March 10, 2000. Rising interest rates, disappointing earnings, and the realization that many online businesses could not finance continued losses caused a broad sell-off. Numerous companies failed, while surviving firms faced severe losses in market value. The downturn lasted into 2002.

The crash did not mean that the internet itself was a failed technology. Companies such as Amazon and eBay survived and later grew substantially, while many speculative ventures disappeared. “Dot-com” refers to the internet-oriented businesses whose web addresses commonly used the .com domain.