The technology-led market collapse after the Nasdaq Composite peaked in March 2000 was the dot-com crash.
The Nasdaq Composite reached a record closing level of 5,048.62 on March 10, 2000. Investors had poured money into internet companies, often valuing businesses on expected future growth rather than profits or established revenue.
After the peak, many technology shares fell sharply. Companies with weak business models struggled to raise money, and numerous internet startups failed. The Nasdaq eventually lost about 78 percent from its peak to its October 2002 low.
The crash did not mean that the internet lacked economic value. Companies such as Amazon and eBay survived and later grew substantially, while many speculative firms disappeared. The event is therefore best understood as the bursting of an investment bubble around internet-related businesses, not the failure of the internet itself.