The technology-heavy market bubble that burst in 2000 after the Nasdaq Composite peaked at 5,048.62 was the dot-com bubble.
During the late 1990s, investors placed exceptionally high valuations on internet and technology companies. Many firms had little revenue or no profits, but rising share prices encouraged more investment and initial public offerings. The Nasdaq Composite became the leading public measure of this enthusiasm.
The index reached 5,048.62 on March 10, 2000. It then entered a prolonged decline as investors reassessed business models, valuations, and the ability of internet companies to generate earnings. The downturn affected technology shares particularly severely and contributed to a broader U.S. recession. The dot-com crash is not the same as the 2008 financial crisis, which centered on housing credit, mortgages, and banking-system stress.