* Indexes down: Dow and S&P 500 0.11% each, Nasdaq 0.35%

* On drops after Q2 net sales miss

* Rocket Lab ( RKLB ) drops post-potential delay to Neutron debut

(Updates with afternoon trading)

By Avinash P and Purvi Agarwal

Aug 11 (Reuters) - Wall Street's main indexes slipped on

Tuesday, as losses in tech stocks weighed on sentiment, while

investors assessed reports of potential deals that could take

the Middle East towards stability.

Pakistani defence minister Khawaja Asif told Bloomberg News

that recent signals indicated the United States and Iran were

close to "some sort of an arrangement." This was soon after

Qatar's foreign ministry said Iran and Oman were in advanced

talks about shipping in the Strait of Hormuz.

"Markets are grappling with the prospects of some form of

detente, although they're misguided in thinking that any form of

resolution is the last chapter of this story," said Ron

Albahary, chief investment officer at LNW.

Brent crude futures were held near one-week highs in

choppy trading. The S&P 500 energy sector gained 1.1% -

the most among peers.

In the market, alternative asset managers rose, with Apollo

Global, and Blackstone adding between 4% and 6%.

Analysts linked the moves to an agreement these institutions

signed with Nvidia ( NVDA ) on Monday to establish

compute-financing platforms aimed at mobilizing more than $500

billion. Nvidia ( NVDA ) ticked up 0.4% in afternoon trading.

The S&P 500 financials index was up 0.2%.

Industrials, regarded as traditionally cyclical, rose

0.7%.

However, Alphabet's 3% decline weighed on the S&P

500 communication services sector, also the biggest

drag on the tech-heavy Nasdaq.

At 12:12 p.m. ET, the Dow Jones Industrial Average

fell 57.41 points, or 0.11%, to 53,918.57; the S&P 500

lost 8.70 points, or 0.11%, to 7,744.41 and the Nasdaq Composite

declined 92.60 points, or 0.35%, to 26,512.75.

The S&P 500 and the Dow hovered near all-time highs hit last

week, while the Nasdaq is over 2% away from its record

but well above its lows in July, when the tech-heavy index slid

almost 10% from its peak.

Consumer and producer price inflation readings, due over the

next two days, will be crucial in shaping market expectations on

the Federal Reserve's policy path - given its focus on the

inflation mandate and Chair Kevin Warsh's stance on cutting back

rates guidance.

Markets were expected to trade directionless ahead of the

prints, Albahary said.

Whether the U.S. central bank would increase interest rates

in September or choose to pause has split traders almost evenly,

according to the CME FedWatch Tool.

Rising energy costs, stemming from the Iran conflict, have

spurred inflation concerns and complicated the paths of central

banks globally.

Strong quarterly earnings in several sectors have, however,

boosted U.S. stocks to new highs. Signs of AI-related spending

paying off have also eased some jitters.

Jabil ( JBL ) added 4.5% on Tuesday after UBS upgraded the

electronics firm's stock to "buy" from "neutral".

Rocket Lab ( RKLB ) slipped 1.6% after appearing to push

back the timeline for the first flight of its Neutron rocket.

U.S.-listed shares of On dropped over 19% after the

sportswear brand missed sales estimates.

LNG company Venture Global ( VG ) slipped about 6% after its

second-quarter revenue slightly missed estimates.

Advancing issues outnumbered decliners by a 1.52-to-1 ratio

on the NYSE and by a 1.38-to-1 ratio on the Nasdaq. The S&P 500

posted 17 new 52-week highs and one new low while the Nasdaq

Composite recorded 79 new highs and 63 new lows.