U.S. stocks traded lower on Monday, as investors grew cautious ahead of a busy week of central-bank meetings and corporate earnings.

‍ECB President Mario Draghi rebuked investors six weeks ago for underestimating the extent of hikes required to bring soaring prices under control, then repeated the message at the World Economic Forum in Davos this month. Draghi has said that the ECB will need to raise rates more than markets are currently expecting in order to bring inflation back under control.

Investors are processing a mixed performance from corporate earnings released this week, with the start of year rally stuttering. While some companies have posted strong results, others have disappointed, leading to a mixed reaction from the market. Overall, the earnings season so far has been mixed, with some bright spots but also some disappointments.

The 24-hour strike action began on Wednesday at midnight. Strikers are expected to picket outside the company's site in Coventry, England, throughout the day.At 6 a.m. London time, workers were pictured camping by a bonfire and waving union flags outside the Coventry site near Birmingham airport. The workers were protesting the proposed closure of the site, which is known as BHX4.

Bank of England Governor Andrew Bailey said that the UK's headline inflation rate has declined for two months, which may be a sign that the economy is improving.