* U.S. Senate approves bill on climate change, drug costs
* Nvidia slides as slump in gaming demand hits Q2 revenue
* Tyson Foods down on quarterly profit miss
* Palantir drops on forecast cut
* Indexes mixed: Dow up 0.14%; S&P, Nasdaq slip (Adds byline, comment, fresh prices)
By Herbert Lash and Bansari Mayur Kamdar
Aug 8 (Reuters) - U.S. stock indexes were mixed on Monday after blockbuster jobs data last week reinforced expectations the Federal Reserve will crack down on inflation, while a revenue warning from chipmaker Nvidia was another reminder of a slowing U.S. economy.
Stocks edged off the day's highs as last week's blowout labor market report was initially seen as a sign the economy could withstand aggressive interest rate hikes by the Fed to tame inflation running at four-decade highs.
Investors now await consumer price data for July to be released on Wednesday to gauge whether the Fed might ease a bit in its inflation fight and provide a path for the economy to grow.
"The CPI data will help to confirm if the Fed's tightening efforts have been successful in starting to tame inflation or if continued Fed tightening is needed," said Robert Schein, chief investment officer at Blanke Schein Wealth Management.
The Dow Jones Industrial Average rose 45.37 points, or 0.14%, to 32,848.84, the S&P 500 lost 5.55 points, or 0.13%, to 4,139.64 and the Nasdaq Composite dropped 24.65 points, or 0.19%, to 12,632.90.
The S&P 500 has bounced back 14% from mid-June lows, but signs of persistent inflation could further bolster the Fed's case for aggressive monetary policy tightening.
Anthony Saglimbene, chief market strategist at Ameriprise in Troy, Michigan, said the market will pull back at some point as traders test the recent rebound.
"If we can hold those mid-June levels, it would be another sign that maybe this is more than just a bear market rally and the market is actually trying to recover and anticipate a better environment ahead," Saglimbene said.
"Maybe we can get a little bit higher by year end, but that's if everything lines up perfectly," he said. "We're fairly valued right now based on the cross currents in the market."
U.S. rate futures have priced in a 65.5% chance of a 75-basis-point hike at the Fed's next meeting in September, up from about 41% before the labor market data beat market expectations.
The information technology sector fell 0.9% after chipmaker Nvidia Corp slid 8.0% as the company said it expects second-quarter revenue to decline 19% from the prior quarter to about $6.7 billion due to weakness in gaming.
The Philadelphia SE Semiconductor index declined 2.3%.
The tech-heavy Nasdaq edged lower in choppy trading after rising as much as 1.6% in early trading.
Offsetting losses on the Nasdaq, megacap Tesla rose 2.0% as the U.S. electric-car maker signed contracts worth about $5 billion to buy battery materials from nickel processing companies in Indonesia, according to a CNBC report.
Shares of U.S. automakers jumped after the U.S. Senate on Sunday passed a $430 billion bill to fight climate change that created a $4,000 tax credit for used electric vehicles and provides billions in funding for their production.
Rivian Automotive Inc rose 5.75%, Ford Motor Co gained 4.38%, General Motors Co added 5.21% and Lordstown Motors Corp advanced 5.56%.
Signify Health Inc jumped 12.5% on a media report that CVS Health Corp was looking to buy the health technology company.
Palantir Technologies Inc dropped 12.5% after the data analytics software company lowered its annual revenue forecast as the timing of some large government contracts remained uncertain.
Tyson Foods Inc fell 7.9% after missing quarterly profit expectations.
Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.56-to-1 ratio favored advancers.
The S&P 500 posted eight new 52-week highs and 29 new lows; the Nasdaq Composite recorded 92 new highs and 22 new lows. (Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Shounak Dasgupta and Cynthia Osterman)