(Updates with market close)

* Sportswear brand On tumbles after second-quarter results

* Rocket Lab drops on potential delay to Neutron debut

By Noel Randewich and Purvi Agarwal

Aug 11 (Reuters) - Wall Street ended lower on Tuesday, with

Amazon ( AMZN ) and Alphabet dipping, as investors became more

pessimistic about a potential deal to bring stability to the

Middle East.

The Strait of Hormuz will remain closed as long as the U.S. does

not change its behavior and accept Iran's conditions to end the

war, the newly appointed secretary of Iran's Supreme National

Security Council said.

Brent crude futures held near one-week highs in

choppy trading, while the S&P 500 energy sector index

climbed.

"As has been the case for months, it's just really hard to

come to an agreement that works for everyone. Oil is a little

higher, pricing in more uncertainty around that," said Ross

Mayfield, investment strategy analyst at Baird in Louisville,

Kentucky.

"The market has obviously gyrated around this conflict at

times, but it hasn't been the big headwind that a lot of people

imagined it might be."

Amazon ( AMZN ) and Alphabet each fell and weighed

on the S&P 500 and Nasdaq, while SpaceX also dipped.

Alternative asset managers rose, with Apollo Global and

Blackstone both rallying. They were among financial

institutions that recently partnered with Nvidia ( NVDA ) to

establish compute-financing platforms aimed at mobilizing more

than $500 billion.

According to preliminary data, the S&P 500 lost 25.32

points, or 0.33%, to end at 7,727.79 points, while the Nasdaq

Composite lost 160.36 points, or 0.60%, to 26,445.00.

The Dow Jones Industrial Average fell 188.41 points, or

0.35%, to 53,787.57.

Strong quarterly earnings helped lift the S&P 500 to

all-time highs last week, while the Nasdaq was down

about 2% from its record high close on June 2.

Signs that heavy investments by Microsoft and Amazon ( AMZN ) in AI

data centers are paying off have also lifted sentiment.

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 Chair Kevin Warsh's

goal of reducing guidance on monetary policy.

Traders are split over the likelihood of an interest rate

hike at the central bank's September meeting, 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.

Jabil ( JBL ) climbed after UBS upgraded the electronics

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

U.S.-listed shares of On tumbled after the sportswear

brand missed sales estimates.

LNG company Venture Global ( VG ) fell after its second-quarter

revenue slightly missed estimates.