Nokia Oyj (NOK) surged 6.05% in pre-market trading, extending its recovery from a sharp post-earnings selloff. The rally was fueled by S&P Global Ratings upgrading the company's credit outlook from "stable" to "positive" while affirming its BBB- rating, citing progress in business diversification and stable cash flow performance.

The credit rating action provided a strong catalyst for the stock, which had been rebounding after a classic "buy-the-rumor, sell-the-news" decline following Nokia's stellar second-quarter earnings report. The company posted an adjusted comparable operating profit of EUR 4.34 billion, up 18% year-over-year and significantly above market consensus. AI and cloud business orders reached EUR 2.8 billion with sales doubling year-over-year, and full-year profit guidance was raised to EUR 2.1-2.6 billion.

The positive outlook upgrade and continued recovery momentum have reinforced investor confidence in Nokia's strategic transformation and improving financial profile, driving the stock higher in pre-market action.