The Dot-com bubble burst around 2000, causing a major U.S. stock-market crash.
During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on expected future growth rather than profits. The Nasdaq Composite rose dramatically, reaching a record closing level of 5,048.62 on March 10, 2000.
Many online companies had little revenue, weak business plans, or no path to profitability. As interest rates rose and confidence faded, investors began selling technology shares. The Nasdaq then lost roughly 78% of its value from its 2000 peak to its October 2002 low.
The crash is often confused with the broader 2000–2002 bear market, which also affected established technology firms. The term “dot-com bubble” refers to the speculative boom and its collapse, while “dot-com crash” commonly describes the market decline that followed.