Investors poured money into Internet startups during the 1990s hoping they would one day become profitable. The dotcom bubble, also known as the Internet bubble, grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups, and the failure of dotcoms to turn a profit. The bubble also caused several Internet companies to go bust.The Nasdaq, which rose five-fold between 19, saw an almost 77% drop, resulting in a loss of billions of dollars.Equities entered a bear market after the bubble burst in 2001.While technology companies delivered record returns since the pandemic. The value of equity markets grew exponentially during the dotcom bubble, with the Nasdaq rising from under 1,000 to more than 5,000 between 19. The technology heavy index Nasdaq composite reported one of the biggest fall of 26 in 2022 so far across equity markets.technology stock equity valuations fueled by investments in Internet-based companies in the late 1990s. In fact, S&P stocks have been hot since the mid 1990s, compared to the long term. The dotcom bubble was a rapid rise in U.S. That looks high compared to a long-term mean of 16.

Tech stock crash