The U.S. stock-market collapse that followed the 2000 peak of technology shares is known as the dot-com crash.
During the late 1990s, investors poured money into internet companies, often valuing businesses more for projected growth than for profits or established revenues. The Nasdaq Composite became a major measure of this enthusiasm because it contained many technology and communications companies.
The bubble reached its market peak in March 2000. As earnings disappointed and interest rates rose, investors began selling internet and technology shares. Many companies failed, while even surviving firms experienced enormous declines in their market values.
The dot-com crash is distinct from the 2008 financial crisis: the former centered on excessive technology-stock valuations, whereas the latter was closely tied to housing finance and banking. The Nasdaq eventually took many years to regain its earlier high.