The U.S. stock-index bubble that burst in March 2000 was the dot-com bubble. Investors had driven technology and internet shares to extraordinary valuations during the late 1990s, often valuing companies on expected future growth rather than profits.
The Nasdaq Composite reached its peak of 5,048.62 on March 10, 2000. As earnings failed to match expectations and interest rates rose, technology shares began to fall. The decline accelerated through 2000 and 2001, wiping out large amounts of market value and ending many unprofitable internet ventures.
The crash did not mean that the internet lacked economic value. Companies such as Amazon and eBay survived and later expanded, while many other firms disappeared. The term dot-com refers to the .com domain associated with internet businesses, but the episode also involved telecommunications, software, and other technology companies. It remains a major example of valuation excess and speculative enthusiasm.