Which stock-market bubble burst in March 2000, beginning the dot-com crash?

The stock-market bubble that burst in March 2000 was the dot-com bubble.

The boom centered on internet-related companies, especially firms with newly popular “dot-com” names. Investors often valued businesses on expected future growth rather than profits, and venture capital funded many companies that had limited revenue or no sustainable business model.

The Nasdaq Composite reached 5,048.62 on March 10, 2000. As enthusiasm faded, investors sold technology shares, financing became harder to obtain, and many companies failed or were acquired. The Nasdaq subsequently lost a large share of its value.

The crash did not mean the internet was unimportant. Online commerce and digital services continued to expand, while the bubble exposed the difference between transformative technology and a sound investment price. The dot-com crash is distinct from the housing-driven financial crisis of 2007–2009, although both involved optimism and leverage.