The U.S. stock-market boom that ended when the Nasdaq Composite began falling sharply in March 2000 was the dot-com bubble.
During the late 1990s, investors poured money into internet and technology companies, often valuing businesses on future growth rather than current profits. The Nasdaq Composite rose from 751.49 at the start of 1995 to a closing peak of 5,048.62 on March 10, 2000.
After that peak, technology shares fell as investors reassessed unrealistic valuations and many internet companies ran out of cash. The collapse was not limited to firms without viable technology; even major companies suffered large declines. The term dot-com refers to the internet domain suffix used by many of the new businesses, while the broader technology-stock downturn extended well beyond March 2000.