The U.S. market crash that followed the collapse of internet-focused companies in the early 2000s was the dot-com crash.
During the late 1990s, investors poured money into companies associated with the rapidly expanding internet. Many firms had little revenue, large losses, or business plans based mainly on attracting website users. Venture capital, initial public offerings, and optimistic forecasts pushed technology valuations to extreme levels.
The Nasdaq Composite reached a peak on March 10, 2000. As investors began demanding evidence of sustainable profits, technology shares fell sharply. The decline continued through 2002 and erased substantial paper wealth, while many internet companies closed or were acquired.
The crash did not mean that the internet lacked economic value. Companies with durable business models eventually became major businesses, but the market had priced many young firms as though future success were guaranteed. The dot-com episode is therefore a classic example of speculative valuation followed by a long correction.