The U.S. stock-market crash that began after a sharp fall in technology shares in March 2000 was the dot-com crash.
The dot-com crash followed years of speculation in internet and technology companies. Investors assigned extraordinary valuations to firms with limited revenue, weak profits, or untested business models. The Nasdaq Composite reached a peak on March 10, 2000, then entered a prolonged decline as expectations changed and technology companies reported disappointing results.
The downturn was the bursting phase of the dot-com bubble. Many internet startups failed, while established technology companies also lost substantial market value. The Nasdaq eventually fell about 78% from its 2000 peak to its October 2002 low.
The crash is sometimes confused with the broader 2000–2002 bear market, which also affected nontechnology sectors. “Dot-com crash” specifically emphasizes the collapse of speculative internet and technology valuations, while “dot-com bubble” refers to the preceding boom.