Both men were being questioned by police on Friday morning.
The victim was standing by his car when he was killed.
“He was hit by several shots,” said Marie-Louise Nilsson, at Stockholm police, to TT.
She explained that police had recovered a gun as well as ammunition which, they say, could be linked to the shooting.
There are several witnesses to the killing, which took place just before 8pm on Thursday, and police say that they were receiving tip-offs from the public throughout the night.
The murder victim, who was known to police, was said to be walking along the street when another man came up to him. They spoke, and then the second man shot him.
Police have not revealed the exact time of the arrests, and nor would they give an indication of what the suspects had said in their questioning.
“We still don’t have a theory about the motive,” said detective Gert Fredlin.
The forensic examination of the scene was concluded on Friday morning and the police cordon lifted. The gun and ammunition found near the scene is thought to have been used in the murder.
“But that is not certain,” said Fredlin.