One reason for the bursting of the Internet bubble is that on March 10, 2000, a large number of high-tech stocks were sold, which led to the decline of the Nasdaq index. The results of these selling orders triggered a chain reaction, and investors, funds and institutions began to liquidate, resulting in the Nasdaq index losing nearly 900 points in just six days. Another reason is that the expenditure of enterprises to deal with the Y2K problem has increased. After the New Year, the expenditure of enterprises dropped rapidly, which had a negative impact on the American stock market. Moreover, the poor performance of Internet retailers during 1999 Christmas also played a certain role in the bursting of the bubble. Many internet companies stopped trading at 200 1, and many even never made a profit, which also accelerated the decline of the bubble.