“Suspicions against the 16-year-old have weakened during his time in custody. He is no longer suspected of a crime,“ prosecutor Andreas Nyberg said in a statement.
Three youths aged 15 to 20 were killed in Tuesday's shooting in broad daylight at a hair salon in central Uppsala, about 70 kilometres (45 miles) north of Stockholm.
Swedish media have reported that at least one of the dead had connections to a criminal gang, though police have not confirmed those reports.
Uppsala is home base for Sweden's two most notorious gangs, Rumba and Foxtrot.
Sweden has struggled for years to rein in gang conflicts, which have led to frequent shootings and bombings across the country that have occasionally claimed innocent victims.
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