Dot Com Collapse

Full Name
2000 Dot Com Collapse
Event Type
Start Date
End Date
Parent Event

The Dot-Com Bubble Collapse was a precedent of the Dot-Com Bubble, which was characterized by the equity markets that had grown exponentially with the technology-dominated Nasdaq index rising from under 1,000 to more than 5,000. The Bubble ultimately burst in a spectacular fashion, leaving many investors facing steep losses and several internet companies going bust, with Nasdaq dropping to almost 77%. In 2001 and through 2002 the Bubble burst, with equities entering a bear market. By the end of 2001, most dotcom stocks had gone bust. Companies that famously survived the Bubble include Amazon, eBay, and Priceline.

  • Also known as the "Tech Bobble"
  • Potentially popped because Alan Greenspan increased interest rates
    • Although, markets were extremely overpriced and a bubble looking for any pin
  • NASDAQ 100 index collapsed 84% in 30 months
    • Dropped 32% in 15 trading days of late march 2000
    • Continued to drop until October 2002
  • Market value of household equities dropped from 10 to 4.8 Trillion