The Ibovespa rose 0.7% to close at 175,335 on Monday as a pause in the Middle East conflict sent oil prices lower and eased inflation concerns.
Crude prices fell after the US and Iran halted strikes over the weekend amid renewed diplomatic efforts, with President Trump reportedly open to restarting peace talks.
The pullback in oil prices supported financials, with Itaú gaining 1.4%, Bradesco rising 1.2%, and Itaúsa advancing 2%.
Utilities moved higher, led by Axia (+2%) and Sabesp (+1.7%).
WEG gained 0.9% after Bradesco BBI upgraded the stock to Outperform and JPMorgan raised its rating to Overweight.
The company also secured a contract to supply two generating units for Engie's Jaguara hydroelectric plant expansion.
Embraer jumped 5.3% after reporting a record second-quarter backlog of $34.5 billion.
In contrast, Petrobras fell 2.8% as lower oil prices weighed on the stock.
Investors will focus on July's mid-month inflation report on Tuesday for clues on the monetary policy outlook.