The dot-com bubble burst in 2000, triggering a major technology-stock crash.
The Nasdaq Composite reached a peak of 5,048.62 on March 10, 2000. Many internet companies had attracted enormous valuations despite limited profits, unproven business models, or no earnings. When confidence changed, investors sold technology shares and funding became harder for young companies to obtain.
The Nasdaq’s decline continued after the initial peak. By October 2002, it had fallen roughly 78 percent from its March 2000 high. Numerous dot-com firms failed, while stronger companies survived and later became important parts of the digital economy.
The bubble is often confused with the broader 2000–2002 bear market. The crash centered especially on technology and internet shares, although it affected wider indexes, venture capital, corporate investment, and employment in technology-related industries.