The spell description provides information about the interaction of magical light and darkness.
There are a couple of lines that clarify how magical light and magical darkness from the spell interact.
The first one is (emphasis mine):
A creature with darkvision can't see through this darkness, and nonmagical light can't illuminate it.
So, actually, the sword (being magical) can break the darkness spell.
The second bit is the following:
If any of this spell's area overlaps with an area of light created by a spell of 2nd level or lower, the spell that created the light is dispelled.
Hence, a Cleric who casts the Light cantrip while inside the Darkness' AoE cannot illuminate the area.
On the other hand, other spells can successfully counteract the Darkness spell: for example, Daylight:
If any of this spell's area overlaps with an area of darkness created by a spell of 3rd level or lower, the spell that created the darkness is dispelled.