How did the dot com bubble affect supply and demand?

How did the dot com bubble affect supply and demand?

The dotcom bubble crash was a shock event that resulted in massive sell-offs of stocks, as demand waned and restrictions on venture financing increased the rate of the downturn. The crash also resulted in massive layoffs in the technology sector, as it was inevitable.

Did the dot-com bubble cause a recession?

A Nasdaq sell-off in March 2000 marked the end of the dot-com bubble. The recession that followed was relatively shallow for the broader economy but devastating for the tech industry.

What happened in the tech bubble?

The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies in the late 1990s. 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 1995 and 2000.

Did the dot-com bubble affect housing?

In 2000, the dot-com bubble burst, destroying $6.2 trillion in household wealth over the next two years. Five years later, the housing market crashed, and from 2007 to 2009, the value of real estate owned by U.S. households fell by nearly the same amount — $6 trillion.

What started the dot-com crash?

The dot-com bubble, also known as the dot-com boom, the tech bubble, and the Internet bubble, was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.

What happened during the tech bubble?

The dot-com bubble, also referred to as the Internet bubble, refers to the period between 1995 and 2000 when investors pumped money into Internet-based startups in the hopes that these fledgling companies would soon turn a profit. Low interest rates in 1998 helped drive up the amount of capital invested in dot-coms.

When did the dot-com bubble start?

1995 – 2001
The dot-com bubble in the United States/Periods