The speculative market collapse that began after the Nasdaq Composite peaked in March 2000 was the dot-com crash.
During the late 1990s, investors poured money into internet and technology companies. Many firms had little revenue or no profits, but their share prices rose because markets expected rapid future growth. Venture capital funding and initial public offerings helped sustain the enthusiasm.
The Nasdaq Composite reached 5,048.62 on March 10, 2000. As investors began demanding stronger business results, technology shares fell sharply. The downturn spread through the broader market, and many internet companies failed or were acquired at much lower valuations.
The crash is often confused with the 2008 global financial crisis. The dot-com collapse centered on technology-stock valuations and business-model expectations, whereas the later crisis was driven primarily by housing finance, leveraged financial institutions, and credit-market failures. Some major technology companies survived and eventually became highly profitable.