The stock-market crash that followed the technology-share boom and peaked in March 2000 was the dot-com crash. It marked the collapse of the dot-com bubble, a period of extreme enthusiasm for internet-related companies.
From the mid-1990s, investors poured money into firms connected with the World Wide Web. Many companies had little revenue or no profits, yet their share prices rose rapidly because investors expected enormous future growth. The Nasdaq Composite, which contains many technology companies, became a key measure of the boom.
The Nasdaq reached its peak on March 10, 2000. It then fell sharply as investors reassessed valuations, interest rates rose, and many internet businesses failed to develop sustainable business models. The decline continued for several years, and the index eventually lost roughly four-fifths of its value from its peak to its 2002 low.
The crash did not mean that internet technology was worthless. Companies such as Amazon survived and later became much larger. The main lesson was that a useful technology can still be surrounded by unsustainable prices and speculative business plans.